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Italian government in crisis as Berlusconi pulls support

  • In Italy, Silvio Berlusconi withdraws support for Prime Minister Enrico Letta's government, as all five center-right ministers pull out of the coalition.
  • For his part, Berlusconi blames Letta's inability to forge an agreement on fiscal measures. The parties' failure to reach a deal on Friday means a 1% sales tax hike will go into effect on Tuesday.
  • Letta (of course) says Berlusconi is attempting to turn attention away from his tax-fraud conviction: "In order to justify his crazy and irresponsible move, aimed exclusively at covering his personal problems, Mr. Berlusconi is trying to invert responsibilities, using the sales tax as an alibi."
  • Whatever the case, it's bad news for the country (and likely for its financial markets) as Letta will now have to consult with President Giorgio Napolitano on whether to call for new elections or attempt to forge a new coalition.
  • More here
  • Equity ETF: EWI.
  • Bond ETFs: ITLY, ITLT.
Comments (5)
  • The Geoffster
    , contributor
    Comments (4009) | Send Message
     
    This is news?
    29 Sep 2013, 02:10 PM Reply Like
  • Angel Martin
    , contributor
    Comments (1291) | Send Message
     
    Intesa bank CEO just resigned
    http://bit.ly/19P5W0B

     

    now, CFO or CEO unexpected resignation = sell that stock;

     

    but i'm not sure if this has any wider significance for the italian bank sector
    29 Sep 2013, 08:08 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (998) | Send Message
     
    Intesa SP is one of the largest holders of PIIGS debt in Europe.
    30 Sep 2013, 02:32 AM Reply Like
  • caupachow
    , contributor
    Comments (333) | Send Message
     
    La Dolce Vita!
    29 Sep 2013, 11:32 PM Reply Like
  • Randal James
    , contributor
    Comments (2326) | Send Message
     
    No wonder all the little Fiats dive into the ocean and drive to the US!
    30 Sep 2013, 01:37 AM Reply Like
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