OctaFX | OctaFX Forex Broker
Open trading account
Back

Italian politics remain in state of discordancy

FXstreet.com (Barcelona) - Italian Prime Minister Giorgio Napolitano continued, without success, negotiations to form a coalition government over the weekend, saying he would keep trying to find new options to unravel the gridlock.

Napolitano also dismantled rumours over a possible resignation before his full tern ends on May 15, despite he admits that there is limited room to reach a compromise as irreconciable positions remain far apart among the three main political parties.

From Napolitano: “Until the final day, I can at least contribute to creating conditions that are more favourable to the aim of unblocking a political situation which has ended up with irreconcilable positions.”

Reuters adds, citing Napolitano: "I will continue until the last day of my mandate to do as my sense of national responsibility suggests, without hiding from the country the difficulties that I am still facing," he told reporters at his Quirinale palace.

There were reports all over the main Italian newspapers on Sundays about a call Napolitano had received from ECB's President Mario Draghi pushing for Napolitano to remain in office until the end of his mandate, as otherwise tensions may quickly intensify in financial markets, which would only add fuel to the fire after the ongoing crisis in Cyprus.

It is thought that Napolitano will seek external assistance from a groups of experts, tasked with proposing both economic and social reforms that could be bring the parties closer to fresh discussions on a new road-map.

From Reuters: "He named 10 senior figures including Enrico Giovannini, the head of statistics agency ISTAT, European Affairs Minister Enzo Moavero Milanesi and Bank of Italy board member Salvatore Rossi as well as one senior figure from each of the main parties apart from the anti-establishment 5-Star Movement."

Until the picture clears up, Napolitano has emphasized that the technocrat-led government of Mario Monti will still have full administrative authority, although also saying that the current government is disempowered now from an any significant reforms in Italy's lackluster economy.

Parliament must soon begin preparations to vote for a new president either to oversee the first steps of a new government or early elections and the battle to choose the next head of state is unlikely to ease the political tensions.

The head of state, elected by a joint sitting of parliament and representatives from the regions, has a broadly defined but at times vital role in overseeing affairs of state, as Napolitano himself has shown repeatedly ever since the last Berlusconi government fell in 2011.

With bond markets closed for the Easter break, investors have been left on the sidelines but a poorly received auction of mid- and long-term debt last week underlined the danger if the crisis drags on.

Forex: EUR/USD holds above 1.28 amid Italy's uncertainty

With Italy's political uncertainty in the middle of its process and capital controls in Cyprus ready to last at least 1 month, minister said, EUR/USD is last still barely above the 1.28 handle, gapping slightly to the downside in early Asia-Pacific. The pair has printed a session low so far during the interbank pre-open at 1.2796, now off those lows at 1.2807 bids.
Read more Previous

Italian politics remain in state of discordancy

Italian Prime Minister Giorgio Napolitano continued, without success, negotiations to form a coalition government over the weekend, saying he would keep trying to find new options to unravel the gridlock.
Read more Next
Start livechat