Feb 26, 2013
Forex Flash: Italy's next government has to deliver change soon – Merrill Lynch
The Italian election result proves the electorate is strongly voicing a need for change to re-start economic growth, job creation and overall welfare, according to Merrill Lynch analysts. “The detailed breakdown shows the centre left under-performed expectations, losing seven major and registering a narrow victory in many others. On the right side, the Northern League, Berlusconi's ally, comes out significantly weakened in two of its three key regions: Piedmont and Veneto”. In the analysts view, a coalition between PD and Five Stars Movement is viable since they share similar views on institutional reforms, public administration improvements and liberalization measures, but negotiations may be difficult in the coming weeks. Also, the next government will likely have to deliver change or it may soon lose the mandate.