Markets spooked by Italy's political paralysis

Now Reading:

Markets spooked by Italy's political paralysis

Text size Aa Aa

Italy still has no new government and traders are nervy. The amount that Italy is having to pay in interest for investors to buy its government bonds jumped on Thursday, showing the market’s doubts about Italy’s prospects of forming a solid administration.

Pier Luigi Bersani, the leader of Italy’s Democratic Party, has so far failed to pull together backing for a centre-left administration.

The anti-establishment Five Star movement turned him down – in a March 27 meeting streamed live on the Internet. Five Star’s Senate group leader Vito Crimi said it will not join a government led by any other party.

“We have no problem in putting ourselves forward to try to form a government based on our programme. Then, it will also be up to the other parties. I told you that we have something that the others don’t have. That is credibility,” Crimi told reporters.

Bersani has also been unable to strike a deal with the centre right. Angelino Alfano, the national secretary of the People of Freedom (PDL) said “the question is now closed”.

Bersani is due to report on his progress to Italy’s President on the evening of March 28.