Rome

Monti tries to calm markets, leaders on Italy's future

Premier sees 'no vacuum' in decision-making

Monti tries to calm markets, leaders on Italy's future

Rome, December 10 - Italian Premier Mario Monti on Monday attempted to calm markets worried that Italy would backpedal on reforms aimed at bringing its debt under control. Investors fled from the Milan Stock Exchange Monday, driving shares down by over 3%, following Monti's announcement Saturday that he would resign once next year's budget had been finalized. Meanwhile, in a sign of the difficulties facing the country, the spread between Italy's 10-year government bonds and their German equivalent spiked upwards Monday after declining gradually over the past months. Earlier Monday, Monti warned against reading too much into the oscillations of the market, saying that people should not "dramatise the reactions" to his resignation announcement. Investors - and international leaders - reacted nervously to Monti's resignation, worrying that the international credibility he restored to Italy was at risk. Speaking from Oslo, where the European Union was receiving the Nobel Peace Prize, the outgoing premier said later that "markets shouldn't fear a decision-making vacuum" in Italy. From Oslo, Monti said that Italy faced several "challenges" in its quest to achieve higher growth and employment. The challenges will be "particularly intense2 for those "who like Italy, in the past, unfortunately waited too long to tackle the imbalances in public finances". Newspapers and pundits Monday speculated about whether Monti would somehow seek to remain involved in Italy's politics. Were he to run for office, Monti would have to make his intentions clear soon, given the relatively short timetable leading up to new elections expected in February. However, some reports suggested the respected former European commissioner might serve as a member of a centre-left government, should Italy's Democratic Party (PD) win the upcoming elections. "In this past year Monti and Bersani have understood each other well. I am certain that they will find the best solution," Enrico Letta, the PD's second in command, said Monday referring to the working relationship between Monti and PD leader Pier Luigi Bersani, who will represent the party at elections. On Monday, Bersani said Monti should not seek office this time around. "In the future I think it will be possible to have a relationship with Monti in the name of Italy, (but) it would be easier if Monti remained out of the electoral contest," Bersani said.

Lascia il tuo commento

Condividi le tue opinioni su Gazzetta del Sud online

Caratteri rimanenti: 400

Le altre notizie

i più letti di oggi

Natalina tornava dal lavoro

Natalina tornava dal lavoro

di Salvatore De Maria