Europe

Italy's prime minister resigns amid coalition chaos

Giuseppe Conte and Matteo Salvini
Italian Prime Minister Giuseppe Conte (R), flanked by Deputy Prime Minister and Interior Minister Matteo Salvini. Photo: Andreas Solaro/AFP/Getty Images

This is a summer of crises for Europe, with a political collision in Italy landing in the midst of Brexit chaos while the continent's top economies flirt with recession.

Driving the news: Italian Prime Minister Giuseppe Conte said Tuesday that he would submit his resignation amid tensions between the 2 populist parties that comprise his government coalition: the anti-establishment Five Star Movement and the far-right League. He declared that the ruling coalition of 2 populist parties "ends here."

Shrinking German economy signals danger for global financial health

A sign in German warning us of an economic crisis
Illustration: Lazaro Gamio/Axios

The Dow's 800-point fall grabbed headlines, but the real warning about the global economy's dire health comes from Europe. The German economy shrank in the second quarter, showing negative growth for the second time in 4 quarters.

Why it matters: Germany is being decimated by the global downturn in manufacturing and trade that has weighed extensively on major exporting countries. The downturn is likely coming for other economies as well, experts say.