Inconclusive Results In Italy: Political Deadlock?
BNP Paribas | Mar 03, 2013 05:37AM ET
- Elections in Italy: inconclusive results
- Financial markets and rating agencies reacted moderately … for the moment
Incomprehensible election law, two years of austerity and a campaign that was heavy on the populism have produced the result that many feared in Italy: a political deadlock and a divided parliament that will struggle to agree on a new Prime Minister. Mr Bersani, who won the narrowest of majorities in the Lower House is still the best-placed for the role.
But even if he were to be appointed rapidly, he would have to work with forces that are so antagonistic and unstable that passing any legislation would be a major challenge. Reform of the electoral system with the support of the Five Star Movement at the very least, followed by fresh elections (probably before the end of 2013) is one possible outcome. A grand coalition of the centre right and centre left, which would bring Mr Berlusconi back into the game, is another. In the meantime, Mr Monti is looking after day-to-day matters; a temporary solution that could well last.
BY Jean-Luc PROUTAT
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