Guardian: Reports that a Speech by the Italian PM to the lower House of the Italian Parliament has failed to sooth the markets, the article states the following on the speech, “ ..contained neither an appeal to the nation for painful sacrifices …..(or )..radical, structural reforms that most economists believe Italy badly needs. ” Lets be honest Mr Berlusconi with his various Court cases should not be PM of Italy at this minute, there are rumours of disagreements within the Government between the PM and the Finance Minister, hardly something that will calm the markets. Also if you’re a politician in trouble and Mr Berlusconi is in legal trouble you cant afford real harsh measures that would destroy your political base, just ask Obama how popular he is with his base after the debt ceiling agreement. Thus it can be postulated that the Berlusconi Government wont push the tough economic reforms that Italy needs and thus will need a bailout from the EU/ECB and the IMF. Thus the future default of Italy is down to its politics not its economy.
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