Il Giornale: "The Monti Government Is Increasingly Hanging By A Thread"
As predicted in our overnight summary piece titled, "Sentiment Shaken By Concerns Of Political Circus Returning To Italy" Europe appears set to be gripped by yet another political crisis, this time by the country that most forgot in 2012, with the attention focusing primarily on Spain and Greece. The reason is what some may call Berlusconi's revenge, who after being eliminated by the ECB in November 2011 when Draghi sent Italian bond spreads soaring, and made Berlusconi's departure a condition to returning normalcy in exchange for planting yet another Goldman tentacle in Italy, Mario Monti, has now shaken the credibility of his successor by having his party PDL abstain from a vote of confidence in favor of Monti's growth measures. The result, as Il Giornale reported moments ago, is that the "the government is increasingly hanging by a thread". It continues: 'Now Prime Minister Mario Monti is likely to no longer have the numbers in parliament. The majority creaks." Is this the end of the technocratic quiet in the austerity regimes? And if the people have said Basta to Goldman and its appointees, does this open the door wide for the likes of Berlusconi to retake the power and force Goldman to scramble to regain status quo "normalcy" for another several months just as every sellside firm has bet the ranch on a global renaissance in 2013?
From Il Giornale, Google translated:
The position of the PDL has created a strong nervousness among the ranks of the Democrats. "When the PDL decided to move out abstention by the majority, this means that the government no longer has the confidence of the majority of the halls of Parliament," he emphasized the group leader of the Democratic Party in the Senate Anna Finocchiaro denouncing "a political issue of great importance." "Today the trust has numbers that do not meet the majority of the Senate," he continued Finocchiaro that, despite not having a crystal ball, did not rule out the outcome "technically" bad for the government. And this was one consequence: "Monti must rise to the Quirinale." Satisfied, however, the Northern League. "Finally, the PDL has opened my eyes and decided not to support more government," said the leader of the Northern League Federico Bricolo the hope that "the PDL'm serious," and "continue on this road because this means that you can also open new political scenarios."
Because Europe didn't have enough moving pieces as is. While for now the government is not in danger of an imminent collapse, the EURUSD, which once again dipped below 1.3000 is certainly watching the developments out of Italy with great interest.