What Happened: The Italian Senate will vote on a timeline for a no-confidence motion against Prime Minister Giuseppe Conte on Aug. 13 after the leaders of Italy's main parliamentary groups failed to agree on a date for the vote on Aug. 12, La Stampa reported. Meanwhile, several members of the center-left Democratic Party have signaled their willingness to form a temporary alliance with the anti-establishment Five Star Movement in an attempt to avoid early elections.
Why It Matters: If the Democratic Party remains united over the issue and decides to support the Five Star Movement in the formation of a new government, the country may avoid an early election, although a coalition between both parties could be highly fragile. Nevertheless, the formation of a new government would temporarily ease concerns about political stability in the country and calm financial markets.
Background: The right-wing League party triggered a political crisis on Aug. 8 when it demanded early elections and presented a no-confidence motion against Conte.
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