Parties May Struggle To Form Government In Italy
Holger Schmieding, chief economist at Berenberg Bank in London, said the mere prospect of facing the bond market without the ECB's implied backing could put pressure on politicians to sort out their differences, especially with a nudge from the European Union's executive commission and eurozone heavyweight Germany, the architects of austerity as a strategy for getting Europe out of its financial mess.
"We would expect the ECB, Brussels and Berlin to emphasize that the safety net would be available for an Italy that gets its act together," he said in a research note to investors.
"If tensions escalate, this could help to concentrate minds on the center-right and the center-left in Italy to form some kind of coalition and pursue sensible policies."
____McHugh contributed from Frankfurt, Germany, and Juergen Baetz from Brussels.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV