Italy's Enrico Letta Announces New Government

Tyler Durden's picture

Moments ago, Italy's Enrico Letta announced that after several days of negotiations he has enough support to form a government which will see Letta as Prime Minister, while one of Silvio Berlusconi's closest allies, Angelino Alfano, of Berlusconi's PDL, would become deputy prime minister and interior minister, in effect guaranteeing Bunga immunity from any and all political and criminal prosecutions for as long as the government is in power.

Reuters also informs that "Bank of Italy director general Fabrizio Saccomanni will take the powerful economy ministry and former European Commissioner Emma Bonino will be foreign minister, Letta said after meeting President Giorgio Napolitano. The government will be sworn in at 1030 BST on Sunday and Letta is expected to go before parliament to seek a vote of confidence on Monday."

In other words, the new Italian government will cover all bases: it will be anti-austerity as per Letta campaign to give the people hope that things may get better as much more debt is issued, Berlusconi will be safe and sound, which was his only real mandate, and the Italian Banks will remain in the good graces of the ECB as the link between the financial sector (which has been buying up record amounts of Italian sovereign debt) and the nation becomes inextricably linked, something Europe once upon a time tried to avoid but no longer pretends to even care.

And heading it all, a technocrat who is Chairman of the Aspen Institute Italy.

In short: nothing changes.

The only question is how much more debt will Italy now ramp up as all fiscal prudence is left behind and the insane debt spending frenzy that got Europe insolvent in the first place is rerun all over again.

A full list of Letta's proposed ministers from La Repubblica:

  • Angelino Alfano - Interior Minister and Deputy Prime Minister   
  • Annamaria Cancellieri - Minister of Justice
  • Emma Bonino - Minister of Foreign Affairs 
  • Mario Mauro - Minister of Defense
  • Gaetano Quagliariello - Minister of Constitutional reforms
  • Andrea Orlando - Minister of Environment
  • Graziano Delrio - Minister of Regional Affairs
  • Dario Franceschini - Minister for relations with the parliament
  • Beatrice Lorenzin - Ministry of Health,
  • Enzo Moavero Milanesi - Ministry of European Affairs
  • Nunzia De Girolamo - Minister of Agricultural policies
  • Massimo Bray - Minister of Cultural Heritage
  • Charles Trigilia - Minister of Territorial cohesion
  • Josefa Idem - Minister Equal Opportunities and Sport
  • Maria Chiara Carrozza - Minister Education
  • Enrico Giovannini - Minister of Labour and Social Policy
  • Flavio Zanonato - Minister of Economic Development
  • Fabrizio Saccomanni - Minister of Economy
  • Maurizio Lupi - Minister of Infrastructure
  • Cécile Kyenge - Minister of Integration

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
kliguy38's picture

Thank GOD!!.........we're I can buy AAPL

smlbizman's picture

question...what does this mean to the italian george carlin (25%) party?

Andrew G's picture

Means they'll probably win the next election (they had about 25% of the vote in the last one)

vote_libertarian_party's picture

FUCK BERNANKE...oh, wait, not really relevant here.

fonzannoon's picture

I would not have bought their bonds at 7% but now that they will blow debt out their ass I may pick some up at 4% because that somehow makes sense.

Colonel Walter E Kurtz's picture

If you could get your hands on some of that Japanese fiat, or any other Central Bank fiat for free...I guess it would make sense.

hooligan2009's picture

borrow at zirp (short) lend at 4% for ten years (long)...and pray for 6 months..

i would have said nickels in front of a steam roller..bit its fiat v fiat and its already flat!

falak pema's picture

classical zirped carry trade; join the clubbb...

Short the yen and go long italian bonds.

IridiumRebel's picture

Is it true that Grillo is a Soros prop?

hooligan2009's picture

macabre prediction for you

soros will be dead in 6 months


bank guy in Brussels's picture

Article critiquing Beppe Grillo as a tool of the US regime and its bankers, a fake 'reformer'

pashley1411's picture

A statist rant comparing Grillo to Hitler, and makes Grillo the puppet of the standard Anglo-American boogieman.   Same chit told in Buenos Aires, Caracas, Havana, Oakland, Washington D C.

So the author's beloved PD can continue its policy of circling Italy down the consumption drain.

francis_sawyer's picture

What's a matter with Flintstone he's alright.... <tutti cantante>...

nmewn's picture

Does this cabinet make my ass look fat?

francis_sawyer's picture

<che culo>... essentially... 'WHAT AN IMPRESSIVE FAT ASS'... in Italian... Is actually an expression of good fortune...

nmewn's picture

If ones into big dazzling at some point it could become a liability instead of an asset, especially if airlines start charging by the pound instead of flying by the seat of their pants.

I think I got enough puns in there ;-)

TeamDepends's picture

We prefer our ladies on the rubenesque side (within reason, of course) around here.  Too many skinny girls walking around thinking they need to lose weight (=kookoo).

francis_sawyer's picture

"I'm tired of magazines... Sayin' flat butts are the thing... Ask the average black man & he'll tell ya that... She's Gotta pack much back..."

~Sir Mix-a-Lot

Zero Debt's picture

This is a question better dealt with in private with your technocrat overlords.

hooligan2009's picture

prizes for best alignment of racers to politicians..

could be one per country!

TeamDepends's picture

Fascism should rightly be called Corpratism, as it is the merger of corporate and government power.


Dareconomics's picture

I am sick to death of Italian politics.  At this juncture, it appears that the two establishment parties will collude to reduce the power of the insurgent 5 Star Movement.  Beppe needs to do something, or else his movement is heading to the waste bin of history.

Satan's picture

You sick of Italian politics! Think of us poor folks who live in Italy...maybe it's time I moved back to Spain...oh wait...

ak_khanna's picture

Illusion of Democracy today.

People sponsored by the rich, make false promises to the masses to get elected. Distribute national wealth amongst themselves and their sponsors (Industrialists) and when that is not enough borrow money from rest of the world and continue the distribution process. The borrowed money has to be paid back by taxing the masses keeping in mind that tax rules are made such that the politicians and their sponsors pay minimum or no taxes.

End of political tenure, rinse and repeat till the whole system breaks down and the world wealth is cornered by a miniscule of the population.

Inthemix96's picture

Here is another fucker who wants hung.

Keep going cunt, your time is drawing near.

razorthin's picture

Hopefully he's still alive when they hang him upside down for stoning.

resurger's picture

the fish rots from the head down

FieldingMellish's picture

Bunga! Bunga! .... one more time....

youngman's picture

Looks like they just put back the status quo.....nothing changing here......but where are they going to get all the money to go forward????  at least they have pretty women???  and good food too

Bam_Man's picture

And don't forget the vino!

falak pema's picture

Italy has to stay even keel until september german elections.

Watch out for China feel; they hold door to Japan fiat money play and possible move to military confrontation.

2013 is going to be dangerous for USD so dangerous for world order.

taraxias's picture

I'll probably get 1000 junks for this but it's time for the Tylers to change the narrative.

It seems they always opine that we are on the brink yet it has been proven OVER AND OVER again that politicians will ALWAYS find a way to kick the can down the road.

Either provide some analysis that takes this important factor into account or continue to be wrong at every turn, harming anyone who pays attention to what's posted on here to trade the markets.

I'm as loyal to this site as anyone on here, and I believe in THE END thenTylers will be proven right but I have grown increasingly tired of the Sanford routine "this is the big one honey".

Tyler Durden's picture

What, don't you know that "Krugman "won and that the only way to fix debt is with more debt?

Business Insider covered it extensively. Feel free to unbias your cognitive process and get your instant gratification there at leisure.

Also, the year is 2008 and Bernie Madoff is not looking for investors: there is more than enough of them dying to be part of the golden goose juggernaut that is Bernard L. Madoff Investment Securities LLC than he can possibly accommodate.

Finally, please summarize just "what is posted on here to trade the markets" - it is amusing how after 4 years, those who allegedly read this site, still confuse it for an investor forum.

razorthin's picture

"Austerians were wrong".  Maybe so, but the Austrians are correct.  Austerity without restructuring debt is like wiping your ass with saran wrap.

walküre's picture

Right ... as long as austerity doesn't impede with our civil servant royalty in Congress and Senate. God forbid their life styles and air travel plans would have to suffer

Austerity my ass. There is poverty for the masses and filth, corruption, largesse and abundance for the top. The top is too expensive to carry and that's the truth. Get rid of the top and see a resurgence of innovation, motivation to work and real entrepreneurship.

W T F II's picture

Best comment I have read in a while. A PERFECT description of the inanity of it all...saran wrap, indeed...!!

YHC-FTSE's picture

"Restructuring debt" is in effect kicking it further down the road unless it involves a concerted effort to forgive a significant portion of the debt - ie selective defaulting. 

I think most have come to a concensus that the volume of global debt is unmanageable.  Factor in political unwillingness to cut budgets that barely keep a lid on the (growing) entitlement mob, a disgusting symbiotic relationship with the banks, decreasing tax revenues, and a world full of kamikaze central bankers trying to fly their currencies into the ground to keep exports afloat. Something has to break. And break hard.

The premise of debt-as-asset economy is predicated on growth. The only growth industries these days are entitlements,  fraud (price rigging), political whores, msm propaganda,  & wholsale murder. 

taraxias's picture


I never mentioned Krugman, nor did I say you can cure a debt problem with more debt and nor do I bother to read the trash posted on BI. So stop trying to knock down a strawman, it demeans this site. But you guys need to get a grip. You have been proven wrong over and over again, politicians WILL FIND A WAY TO KICK THE CAN.....ALWAYS.

Until one day they can't.

Your problem is that you've been calling THAT day to be just around the corner for four years now with each and every crisis that's come about. It's not playing out that way, so you need to consider it in your analysis. That's all I'm saying.

taraxias's picture

I also understand this is not an investors site, which to be honest in my opinion is only cover for all the "misses" on here........but you should not allow this once great site to deteriorate to only "buy gold, the world is ending" site either.

I'm only trying to offer constructive feedback so don't put your nose up and get hostile.

walküre's picture

FWIW .. I personally made some of the better financial decisions based on the information delivered on this site.

IridiumRebel's picture

me too......I came from "Marketwatch Wisdom" and got raped. I have had a solid return from investing from this forum. 

falak pema's picture

fwiw, in 2012 I did exactly the opposite of what ZH advised; aka I bet on CAC 40 selectively and made out very well. I don't day trade buy I do buy stock. CAC was undervalued end 2011 and once they survived the Draghi put, it was evident that CAC would bounce in Obammy election year on Zirp/QE/swap support.

I never bought any PM since I am at ZH...aka since Jan 2011. I know that 2011 was good on PMs but then I was too new to ZH logic to either play it contrarian or to play it conventional. 

ZH is exceptionally good on analysis, bad on synthesis; but that is cos it has an ideological bias. 

So nobody is perfect as Billy WIlder taught us! 

Tyler Durden's picture

Please provide the link to where ZH "advised" you to do anything.

Uncle Remus's picture

"suggest to the suggestionable listener..."

falak pema's picture

lol, if the one eyed ever led the blind it would be into PMs and out of Stock on ZH.

You cannot provide emphasis on the fundamental rationale of one play to the detriment of the other in your editorial writings and not assume consequences of that analysis. 

Your analysis, ten times every day,  points to the inevitable demise of artifical risk asset rise, whenever it occurs, of QE pumped fiat and all paper monetary constructs; with an inevitable rush to historical safe haven of PM as consequence in this catastrophe. 

The missing link, THE YETI,  would be to see any editorial argument at ZH, (I know you don't like that premise of an editorial slant on this site), that professes the contrary; aka bull WS economy and Krugmanist fiat logic winning the day even for the space of a few years; swings and balances in top down manipulation. 

That is the ideological position on to which ZH has fixated its whole argument; that this reset as result of artificial manipulation is impending, any moment now; slide down into bottomless sink hole. Zero Hedge on that simple truth is its undying motto.

Not saying its wrong or right, just saying its the only hamburger served on this site. 


Tyler Durden's picture

In all of that pontificating, you missed the requested hyperlink. Can you try again?

razorthin's picture

Actually, I think this somewhat of an "investor site".  Investing implies a long time horizon.  Your frustration is like that of a short/intermediate term trader, not that there is anything wrong with that.  There are some folks here, including myself, who offer some perspective on that front.  But your beef with the Tylers' principal premise that this bankster fiat "experiment" is not sustainable is simply a temporal problem of your making.