Covid-19 represented an enormous challenge for the European Union in 2020 and appropriate policy actions in the first six months of 2021 are fundamental to kickstart a recovery. The Portuguese Presidency comes at a time when measures are required to stimulate new investments and develop new sources of financing across the EU, while maintaining a resilient financial system.
On 13 January, Italia Viva – a minor coalition partner led by former Prime Minister Matteo Renzi – pulled out of the ruling coalition, leaving the government short of a majority in the Senate. However, we believe that snap elections are unlikely for now.