Spanish Minister Worries About Italian Election Effects

Spain said it was extremely worried about the impact of Italy’s deadlocked election result, warning on Tuesday the deadlock could affect the entire euro zone.

Foreign Minister Jose Manuel Garcia-Margallo said there was a feeling of “extreme concern” over possible movements in bond spreads as a reaction to the results.

“This is a jump to nowhere that does not bode well either for Italy or for Europe,” Garcia-Margallo told journalists on the sidelines of a conference in Madrid.

The Spanish government said it was monitoring the situation, especially the fallout on financial markets as the premium investors demand to hold Spanish 10-year debt rather than the German benchmark jumped to 393 basis points, a level not seen in several weeks, when it emerged a cabinet could be hard to form.

via CNBC

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