Reuters - Italy's borrowing costs jumped to record levels Friday, underlining its vulnerability at the heart of the euro zone debt crisis and skepticism about whether the struggling government of Prime Minister Silvio Berlusconi can deliver vital reforms.
Italy’s borrowing costs jumped to record levels on Friday, underlining its vulnerability at the heart of the eurozone debt crisis and skepticism about whether the struggling government can deliver vital reforms
ROME — The front-runner to become Italy’s next prime minister warned Friday of a Greek-style social and economic meltdown unless austerity measures were maintained.
Final rallies in Rome, Naples and Florence ahead of Sunday’s general election brought a flurry of last-minute appeals to a deeply-disillusioned nation.
Polls suggest as many five million Italians have not made up their minds which party to support in the election, which will be held over two days in a country hit by a series of corporate and political scandals.
European equities trade negatively as political tensions on both sides of the Atlantic dampens risk appetite and a lower than expected HSBC manufacturing PMI figure from China further weighs upon investor sentiment. In the US, government is on the precipice of the first shutdown since 1996 after House Republicans refused to pass a budget unless it involved a delay to Obama’s signature healthcare reforms. If the Republicans follow through with their threat a shutdown will occur at midnight tonight.
Italy's Prime Minister Silvio Berlusconi's days are numbered. He will likely be gone in a week. When it happens it will be a case of 2 down with Merkozy (France and Germany), Spain, and Portugal (thus 4) to go.
Former prime minister Silvio Berlusconi, convicted of tax fraud, Threatens to Topple Letta If Expelled From Senate
Silvio Berlusconi threatened to bring down the Italian government if Prime Minister Enrico Letta’s Democratic Party votes to expel the three-time former premier from the Senate.
MILAN, Italy — The Moroccan woman at the centre of ex-Premier Silvio Berlusconi’s sex-for-hire trial has denounced what she says is psychological warfare being waged against her by Italian prosecutors. Karima el-Mahroug, the woman also known as Ruby Heart-Stealer who’s at the center of Silvio Berlusconi’s underage-prostitution trial, said she never had sex with the former Italian prime minister.
Italian leftist Enrico Letta was set to be nominated to be the new prime minister on Wednesday, bringing to an end a two-month deadlock on forming a new government with the launch of a coalition between right, centre and left. President Giorgio Napolitano, who was re-elected to a second term just last week after an agreement between the main parties, summoned Letta to the presidential palace for the expected nomination. Letta was seen arriving for the meeting.
ROME/MILAN — Italian Prime Minister Mario Monti’s imminent resignation drove up the country’s borrowing costs on Monday, as markets took fright at the prospect of a return to an old-style Italian political crisis.
The spread between Italian BTPs and German Bunds widened to 349 basis points from 325 late on Friday and BTP future shed more than a point on concern over Monti’s departure.
On June 1, former Italian Prime Minister Silvio Berlusconi said "Italy should dump the euro unless the European Central Bank agreed to inject more cash into the economy". One day later Berlusconi said the idea Italy should dump euro was a "joke".