Populists humiliated in Italy regional vote

Bloomberg

The Democratic Party, the main establishment force in Italy’s government, roared back to life with an authoritative victory in a key regional vote that shut down talk of a snap election. Italian bonds surged.
In retaining control over the center-left stronghold of Emilia-Romagna, the Democrats signalled a power shift in PM Giuseppe Conte’s coalition, rejuvenating a four-month-old government that’s struggled under the weight of populist demands from its partner, the Five Star Movement.
The PD-led bloc won 51% of the vote against 44% for Salvini’s center-right, Interior Ministry figures showed.
Just two years after losing power and seeing their party reduced to near-irrelevance, the Democrats are now turning things around — at least partly at Five Star’s expense. The anti-establishment Five Star polled just 3.5% in Emilia-Romagna.
Though nominally the senior partner based on number of seats in parliament, Five Star risks losing its influence in the coalition.
“The choice is now between two main contenders,” the Democrats’ leader, Nicola Zingaretti, told reporters, referring to his party and Salvini’s League. “Five Star will find itself facing this dilemma.”
Five Star is also setting up for a leadership battle following the resignation of foreign minister Luigi Di Maio as party leader. More than 20 lawmakers have abandoned Five Star or been expelled from the party since Conte’s second government took office in September.
The Democrats’ post-election posturing suggests they’ll want the final say on a new programme Conte plans to draw up in the aftermath of the weekend vote.
Conte’s Agenda 2023, the programme he hopes will see the government through to the end of the parliamentary term, will likely include tax cuts and a boost for investments etc.