Subscribe Register Login

Friday, December 19, 2014, 12:19 p.m.
Top Picks - Mobile App

Italian political woes rattle European markets

By The Associated Press

This article was published December 10, 2012 at 11:07 a.m.

The imminent end of Prime Minister Mario Monti’s government Monday fueled the largest increase in Italian borrowing costs in four months and threatened to open a new front in Europe’s efforts to deal with its economic problems.

Led by plunging bank shares, the country’s main stock index, the FTSE MIB, was down 2.5 percent in afternoon trading. At the same time, the interest rate on the government’s 10-year bond — an indicator of how risky investors consider a country’s ability to pay down its debt — rose 0.33 percentage points to 4.8 percent.

Monti was tapped by Italy’s president to lead the country in late November 2011 after his predecessor, Silvio Berlusconi, resigned, having lost the confidence of international markets in his ability to save the country from a Greek-style debt crisis.

Monti, a respected economist and former European Union commissioner, won back a degree of international credibility for the country through a series of tax increases and fiscal policy changes that were deeply unpopular at home.

On Saturday, Monti said he decided to resign after Berlusconi’s political party withdrew its support last week.

The looming Italian election campaign is expected to put EU’s budget policy up for review in the 27-country area’s fourth-largest economy.

Comments on: Italian political woes rattle European markets

To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Read our Terms of Use policy.

Subscribe Register Login

You must login to make comments.

TOP JOBS

  • Law clerk

    united states district courteastern district of arkansaslaw ...
    LITTLE ROCK, AR

  • Driver

    company driver to run OTR. $1,300 per week flat rate. Paid w...
    COLCORD, Ok

  • Employment

    Do you talk too much? Do you like people? Help us help you! ...
    Little Rock, AR

  • Lpns

    , LTC exp. or new grad’s preferred. Apply in person Woodland...
    JACKSONVILLE, AR

  • Donate plasma

    . Save LivesEarn money when you donate at Octapharma PlasmaB...
    NORTH LITTLE ROCK, AR

Search 728 jobs >

Top Picks - Mobile App
Arkansas Online