Worries over contagion of Eurozone’s sovereign debt crisis have materialized and the focus is now on Italy. While Prime Minister Berlusconi agreed to step down, he called for elections instead of formation of an interim government. This might further delay implementation of structural and fiscal reforms. The country’s 10-year bond yields surged above 7%, making it impossible to fund its debts by tapping money from the public. Political turmoil in Greece was the same complicated. News said that talks of selecting a new Prime Minister collapsed.
Go here to see the original:
Risk Off as Concerns Shifted to Italy
Leave a Reply
You must be logged in to post a comment.