Italy upsets Europe’s Calm

Just as you thought the crisis mode in Europe was over and markets seem to be enjoying confidence and stability, along comes another curve ball, served up by Italian politicians.

Center-right leader Silvio Berlusconi pulled his ministers out of the cabinet on Saturday, effectively bringing down the government of Prime Minister Enrico Letta and leaving the euro zone’s third-largest economy in chaos.

According to Nicholas Spiro, managing director of Spiro Sovereign Strategy, while markets have grown accustomed to “Italy’s dysfunctional politics,” there’s a sense that things are now spinning out of control, with potentially dangerous consequences for both Italy and the euro zone.


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