Italian newspapers have published reports that Italy, the third largest country in the Euro-zone, is poised to hold early elections. With its 10 year benchmark bond hovering just below 6%, making refinancing evermore difficult and painful (despite ongoing BTP bond purchases by the ECB).
Political instability is unlikely to improve matters. However, given the pain of scandals inflicted on Berlisconi, a new face at the helm might give investors fresh hope that the country may yet put its finances in order sooner, rather than later.
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