This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Italian Election Means New Stress For Eurozone


FRANKFURT, Germany (AP) â¿¿ Until last weekend, Europe seemed headed for a quiet Christmas and New Year's. Then Italy's Prime Minister Mario Monti unexpectedly announced he was going to resign, pulling the plug on a government that had boosted confidence in the country's ability to manage its debts.

The prospect of a return to a shaky government and finances has suddenly put new strains on the leaders of the 17-strong group of European Union countries that use the euro and their efforts to bottle up the region's debt and economic crisis.

Analysts warn that after several months of calm, the eurozone could now be in for a rougher ride as 2013 begins.

The concern is that, while the European debt crisis is not as bad as it was last summer, Italy's problems will spread and further unsettle other parts of the eurozone. Greece faces skepticism that it can keep paying its debts despite ⿬240 billion in bailouts and Spain is still weighing whether to ask for a rescue from the eurozone's bailout fund.

Since it took office in November 2011 â¿¿ after markets lost confidence in Premier Silvio Berlusconi's half-hearted attempts at reform â¿¿ Monti's 13-month old government has managed to lower Italy's borrowing costs in the bond markets â¿¿ albeit with help from the European Central Bank and its offer to buy short-term debt. His unelected cabinet of experts had until elections scheduled for April to implement reforms. Monti resigned earlier than expected after Berlusconi's party withdrew support for his government on Thursday.

Italy's borrowing costs started to rise again Monday morning as investors worried over who would keep the country on the path to recovery. The interest rate on Italy's 10-year bonds, a key indicator of the debt crisis, jumped to 4.75 percent. Last week they yielded only 4.4 percent â¿¿ down from over 7 percent at the start of 2012. At one point during the day, Italian stocks slumped more than 3 percent.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs