A second party in Berlusconi’s ruling faction has come out against early elections. This is just stupid. They’re going to force a vote of non-confidence.
The head of one faction in Berlusconi’s coalition rejects his call for early elections. It’s hard to get a real job out there, you know
10-year spreads over the German benchmark offer another reason to worry. Greece asks for aid: 556 bps Ireland asks for aid: 527 bps Portugal asks for aid: 520 bps Current German/Italian spread: 555 bps (down from the high of 575 … Continue reading
France’s 10-year spread over the German benchmark widened 17 bps today to +146. Reuters is reporting that the ECB is aggressively buying Italian bonds on the secondary market, particularly in the 2yr-10yr space.
Reuters is citing a ‘source close to the PM’ saying Berlusconi will meet the President tonight to “exchange ideas” on his next steps. He will not resign. The market isn’t going to like that headline.
Say they will bring forward a confidence motion if Berlusconi doesn’t resign. At this point, the question isn’t: will he leave? It’s how smooth will the transition be?