This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Parties May Struggle To Form Government In Italy

Comic-turned-political leader Beppe Grillo, whose 5 Star Movement capitalized on a wave of voter disgust with the ruling political class, had a surprisingly strong showing. His bloc of seats in Parliament could prove crucial in making any coalition government viable.

More than half the voters supported either Berlusconi's or Grillo's group â¿¿ both of which campaigned against Monti's austerity measures.

Berlusconi has already ruled out an alliance with Monti, whom he blamed for driving Italy deeper into recession.

And on Wednesday Grillo wrote on his blog that his party would not back a confidence vote on any new government formed by mainstream parties, calling instead for a new election soon.

European leaders pleaded with politicians in Italy to quickly form a government to continue to enact reforms to lower Italy's critically high debt of 127 percent of annual economic output and spare Europe another spike in its four-year financial crisis.

Monti held talks with Jose Manuel Barroso, head of the European Commissions, in Brussels on Wednesday amid worries that the lack of political stability in Italy might reignite the eurozone debt crisis. Afterward, they said in a joint statement that they are "convinced that continued and determined action at European and national levels is needed," including agreed reform and budget consolidation efforts to create growth and jobs. Monti and Barroso said, "The crisis is not yet over and efforts must not be relaxed."

Though Italy's annual borrowing ⿿ its budget deficit ⿿ is relatively small compared with other euro countries at 3 percent of its annual gross domestic product, its overall debt stands at a colossal ⿬2 trillion.

Some analysts believe the threat of losing the ECB life preserver might be enough to push Italian politicians into moderating some of their stances so they can form a government and reassure markets.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,719.74 +41.84 0.25%
S&P 500 1,952.68 +1.86 0.10%
NASDAQ 4,460.0170 +7.2250 0.16%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs