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14 Feb 2014
PM Letta resigns: “It’s true: Italy does break your heart”
Italian PM Enrico Letta handed in his resignation to President Napolitano on Friday, following the Democratic Party's decision yesterday to oust him from the job, which he carried out for the last nine months. Stepping down on Valentine's Day he told reporters: “It’s true: Italy does break your heart.”
Even though the turbulences in Italy haven't caused an alarm in the markets yet, the EU is closely watching the developments on the country's political scene. European Commission spokesman Simon O'Connor assured at midday that there was a confidence Italy would continue with its reform program. Still, EC president Barroso refused to comment on the prospects of the new Italian cabinet.
Meanwhile, Angela Merkel's spokesman Steffen Seibert called for a quick resolution of the situation, in order to restore stability in the country. Accoding to recent reports, President Napolitano is to open talks to form a new goverment at 16 GMT today.
The BBH Global Currency Strategy Team suggest that we could see a statement from Moody's on the situation in Italy later today.
“No statement would be understood as affirming its current ratings and outlook. The political climate cannot be considered a net positive, but yields are low and falling. This week, Italy auctioned 1- and 3-year paper at record low yields. The debt servicing burden has fallen. This is a net positive.”
Even though the turbulences in Italy haven't caused an alarm in the markets yet, the EU is closely watching the developments on the country's political scene. European Commission spokesman Simon O'Connor assured at midday that there was a confidence Italy would continue with its reform program. Still, EC president Barroso refused to comment on the prospects of the new Italian cabinet.
Meanwhile, Angela Merkel's spokesman Steffen Seibert called for a quick resolution of the situation, in order to restore stability in the country. Accoding to recent reports, President Napolitano is to open talks to form a new goverment at 16 GMT today.
The BBH Global Currency Strategy Team suggest that we could see a statement from Moody's on the situation in Italy later today.
“No statement would be understood as affirming its current ratings and outlook. The political climate cannot be considered a net positive, but yields are low and falling. This week, Italy auctioned 1- and 3-year paper at record low yields. The debt servicing burden has fallen. This is a net positive.”