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Referendum: Italian Prime Minister Matteo Renzi Quits

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  • Italian Prime Minister Matteo Renzi Quits

Italian Prime Minister Matteo Renzi quit in the early hours of Monday after losing a referendum he’d called to push through constitutional changes, threatening renewed political and financial turmoil for Europe.

Opponents of Renzi’s proposal to rein in the power of the senate won Sunday’s referendum by 60 percent to 40 percent, with almost all votes counted. Renzi said he’ll turn in his resignation to President Sergio Mattarella later in the day and signaled that he won’t stay on to help stabilize a caretaker administration. The euro fell to a 20-month low.

“In Italian politics, no one ever wins,” Renzi told supporters, his voice breaking and a tear on his cheek as he thanked his wife for her support. “I did everything I thought possible in this phase, but we were not convincing.”

The 41-year-old premier became the second European leader this year to be toppled by a populist revolt that is propelling Donald Trump into the White House and Britain out of the European Union. The result leaves Mattarella seeking a new government chief who can provide a firebreak against the insurgents; polls show an early election would see the anti-euro Five Star Movement swept into power.

A survey by EMG released Sunday showed Five Star winning a second-round ballot by 53 percent to 47 percent against Renzi’s Democratic Party and by 57 percent to 43 percent against the center-right bloc. Five Star had demanded a snap election if Renzi is defeated as it looks to force another referendum — this time on taking Italy out of the euro.

Still, a poll last month showed only 15.2 percent favored leaving the single currency and 67.4 percent were self-described single-currency believers.

Who’s Next?

Possible successors who might be asked to lead a caretaker government include Finance Minister Pier Carlo Padoan, Senate Speaker Pietro Grasso and Culture Minister Dario Franceschini. The country’s mainstream parties have been preparing contingency plans to ensure a government would keep functioning if Renzi was forced out.

The result is “a negative outcome for both political stability and the economy in Italy,” said Wolfango Piccoli, co-president of research firm Teneo Intelligence. “However, it will not pave the way for immediate worst-case scenarios such as snap elections.”

Banca Monte dei Paschi di Siena SpA will be in focus when trading opens Monday. The lender is in the middle of a 5 billion-euro ($5.3 billion) capital raising. Its stock has fallen 83 percent this year and a third of its loan book has soured.

Italian bonds may feel a shock too. They rallied in the final days of the campaign, with the spread between the country’s 10-year debt and similar dated German bunds narrowed by 24 basis points to 162 points.

Europe Votes

The Italian referendum kicked off a year of voting with establishment parties across Europe threatened by upstarts channeling voters anger at immigration and economic stagnation. French President Francois Hollande last week declined to seek a second term, leaving the Republican Francois Fillon as the main opponent to the anti-European Marine Le Pen.

German Chancellor Angela Merkel will run for a fourth term, with the anti-immigrant Alternative for Germany party branding her public enemy no. 1. In Austria, the populists suffered a setback on Sunday when the environmentalist Alexander Van der Bellen defeated Norbert Hofer of the anti-immigrant Freedom Party in a presidential runoff.

Renzi’s Farewell

Renzi campaigned intensively for weeks to in an attempt to salvage his plans to reform Italy. He traveled across the country and used Facebook Live sessions to push home his message that the reform would bring more stable government to Italy, a country which has seen 63 administrations since World War II.

In his referendum campaign, the former mayor of Florence had sought to line up against the elites. He argued that the reform would land a blow against the ruling class which he said has paralyzed Italy for decades, and insisted he was different from Roman politicians. It wasn’t enough.

“I have lost,” Renzi said in a televised statement. “I wanted to get rid of jobs for the boys in politics, and it’s my job that is going.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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EFCC Declares Former Kogi Governor, Yahaya Bello, Wanted Over N80.2 Billion Money Laundering Allegations

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The Economic and Financial Crimes Commission (EFCC) has escalated its pursuit of justice by declaring former Kogi State Governor, Yahaya Bello, wanted over alleged money laundering amounting to N80.2 billion.

In a first-of-its-kind action, the EFCC announced Bello’s wanted status in connection with the alleged embezzlement of funds during his tenure as governor.

The commission, armed with a 19-count criminal charge, accused Bello and his cohorts of conspiring to launder the hefty sum, which was purportedly diverted from state coffers for personal gain.

The declaration of Bello as a wanted fugitive came after a series of failed attempts by the EFCC to effect his arrest.

Despite an ex-parte order from Justice Emeka Nwite of the Federal High Court, Abuja, mandating the EFCC to apprehend and produce Bello in court for arraignment, the former governor managed to evade capture with the reported assistance of his successor, Governor Usman Ododo.

This latest development shows the challenges faced by law enforcement agencies in holding powerful individuals accountable for their actions.

However, it also demonstrates the unwavering commitment of the EFCC to uphold the rule of law and ensure that justice is served, irrespective of the status or influence of the accused.

In response to the EFCC’s declaration, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, issued a stern warning to Bello, stating that fleeing from the law would not resolve the allegations against him.

Fagbemi urged Bello to honor the EFCC’s invitation and cooperate with the investigation process, saying it is important to uphold the rule of law and respect the authority of law enforcement agencies.

The EFCC’s pursuit of Bello underscores the agency’s mandate to combat corruption and financial crimes, sending a strong message that individuals implicated in corrupt practices will be held accountable for their actions.

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Concerns Mount Over Security as National Identity Card Issuance Shifts to Banks

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Amidst the National Identity Management Commission’s (NIMC) recent announcement that the issuance of the proposed new national identity card will be facilitated through applicants’ respective banks, concerns are escalating regarding the security implications of involving financial institutions in the distribution process.

The federal government, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), introduced a new identity card with payment functionality, aimed at streamlining access to social and financial services.

However, the decision to utilize banks as distribution channels has sparked apprehension among industry stakeholders.

Mr. Kayode Adegoke, Head of Corporate Communications at NIMC, clarified that applicants would request the card by providing their National Identification Number (NIN) through various channels, including online portals, NIMC offices, or their respective banks.

Adegoke emphasized that the new National ID Card would serve as a single, multipurpose card, encompassing payment functionality, government services, and travel documentation.

Despite NIMC’s assurances, concerns have been raised regarding the necessity and security implications of introducing a new identity card system when an operational one already exists.

Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers, questioned the rationale behind the new General Multipurpose Card (GMPC), citing NIMC’s existing mandate to issue such cards under Act No. 23 of 2007.

Ogunbanjo highlighted the successful implementation of MobileID by NIMC, which has provided identity verification for over 15 million individuals.

He expressed apprehension about integrating the new ID card with existing MobileID systems and raised concerns about data privacy and unauthorized duplication of ID cards.

Moreover, stakeholders are seeking clarification on the responsibilities for card blocking, replacement, and delivery in case of loss or theft, given the involvement of multiple parties, including banks, in the issuance process.

The shift towards utilizing banks for identity card issuance raises fundamental questions about data security, privacy, and the integrity of the identification process.

With financial institutions playing a pivotal role in distributing sensitive government documents, there are valid concerns about potential vulnerabilities and risks associated with this approach.

As the debate surrounding the security implications of the new national identity card continues to intensify, stakeholders are calling for greater transparency, accountability, and collaboration between government agencies and financial institutions to address these concerns effectively.

The paramount importance of safeguarding citizens’ personal information and ensuring the integrity of the identity verification process cannot be overstated, especially in an era of increasing digital interconnectedness and heightened cybersecurity threats.

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Israeli President Declares Iran’s Actions a ‘Declaration of War’

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Israeli President Isaac Herzog has characterized the recent series of attacks from Iran as nothing short of a “declaration of war” against the State of Israel.

This proclamation comes amidst escalating tensions between the two nations, with Iran’s aggressive actions prompting serious concerns within Israel and the international community.

The sequence of events leading to Herzog’s grave assessment began with a barrage of 300 ballistic missiles and drones launched by Iran towards Israel over the weekend.

While the Israeli defense forces managed to intercept a significant portion of these projectiles, the sheer scale of the assault sent shockwaves through the region.

President Herzog’s assertion of war was underscored by Israel’s careful consideration of its response options and ongoing discussions with its global partners.

The gravity of the situation prompted the convening of the G7, where member nations reaffirmed their commitment to Israel’s security, recognizing the severity of Iran’s actions.

However, the United States, a key ally of Israel, took a nuanced stance. President Joe Biden conveyed to Israeli Prime Minister Benjamin Netanyahu that, given the limited casualties and damage resulting from the attacks, the US would not support retaliatory strikes against Iran.

This position, though strategic, reflects a delicate balancing act in maintaining stability in the volatile Middle East region.

Meanwhile, Russian Foreign Minister Sergei Lavrov and his Iranian counterpart Hossein Amir-Abdollahian cautioned against further escalation, emphasizing the potential for heightened tensions and provocative acts to exacerbate the situation.

In response to the escalating crisis, the Nigerian government issued a call for restraint, urging both Iran and Israel to prioritize peaceful resolution and diplomatic efforts to ease tensions.

This appeal reflects the broader international consensus on the need to prevent further escalation and mitigate the risk of a wider conflict in the Middle East.

As Israel grapples with the implications of Iran’s aggressive actions and weighs its response options, President Herzog reiterated Israel’s commitment to peace while emphasizing the need to defend its people.

Despite calls for restraint from global allies, Israel remains vigilant in safeguarding its security amidst the growing threat posed by Iran’s belligerent behavior.

The coming days are likely to be critical as Israel navigates the complexities of its response while international efforts intensify to defuse the escalating tensions between Iran and Israel.

The specter of war looms large, underscoring the urgency of diplomatic engagement and concerted efforts to prevent further escalation in the region.

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