Monti's resignation raises the chance, analysts say, that the ECB will have to actually deploy its bond-purchase weapon. But without a stable government that can credibly agree to the terms of a bailout, Italy can't get help from the ECB bond purchase plan.Still, markets knew Monti would be leaving soon anyway, with elections already scheduled in April. And if debt costs continue their rise, some think that could be the spur Italian politicians to move forward with pro-growth steps such as reducing legal protections against layoff for established workers. The practice deters hiring and raises youth unemployment. Monti made some changes, but was unable to push through wholesale reform in the face of union resistance.
Italian Election Means New Stress For Eurozone
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