Economic Development Minister Federica Guidi stepped down yesterday, hours after it was announced that her partner, Gianluca Gemelli, is under criminal investigation for abusing his personal connection to the centre-left government in a suspected bid to help his engineering company win contracts with French oil group Total.
At the centre of the scandal is a wiretap recording of Guidi telling her partner that an amendment to the budget law related to Tempa Rossa, an oilfield Total is developing in southern Italy, would be approved.
Commentators were unanimous in saying the remark had left Guidi, 46, with no option but to quit while Renzi was widely reported to have been left fuming over the damage the episode has done to his government's image.
Prosecutors suspect Gemelli had lobbied for the amendment in return for his company being included in Total's list of preferred bidders for contracts at Tempa Rossa.
Opposition leaders seized on Guidi's resignation as fresh evidence that Renzi's administration was every bit as prone to sleaze as its predecessors, despite the youthful premier's claims to the contrary.
Guidi's resignation came almost exactly a year after then transport minister Maurizio Lupi resigned after it emerged a businessman embroiled in a major public works corruption scandal had given Lupi's son a 10,000-euro Rolex watch
"This fossil of a government needs to call it a day," the populist Five Star movement said in a statement issued by its group in the Senate.
Lawmakers from the Italian Left (SI) and disaffected leftists who were formerly in Renzi's Democratic Party (PD) said the scandal represented a wider malaise caused by the premier's allegedly authoritarian style and preference for secret backroom deals.
You’ve hit your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app