by mk
Renzi holds an important card in this fight. His Democratic party is the only major political party in Italy that has shown unwavering support for the euro and the EU. His biggest rival, the populist Five Star Movement, is gaining traction following two big wins in local elections in Rome and Turin and could displace Renzi if the prime minister fails to win a critical referendum in the autumn on his sweeping constitutional reforms. He has sworn to resign if the referendum fails.While the constitutional reforms and the banking crisis are not directly linked, Brussels is keenly aware that support for any Renzi initiative will be guided by voters’ view of the economy.