Monti Rushes to Fashion Italian Government as Markets Offer Little Relief

Author: Tyler Stoffers

As the Euro-debt crisis continues to haunt the markets across the globe we have seen a lot of political changes with high level officials stepping down.  For one, the former prime minister of Italy Silvio Berlusconi has decided to resign from his role.  He had originally denied his resignation via Facebook but as pressure continued to mount he eventually relinquished his position.  As a replacement, Italian president Napolitano has named Mario Monti to be the new PM in hopes to encourage change that will allow the country to survive the current economic storm.  With this appointment, it is likely that the political majority will be held by the Technocrat party.  However, the logistical details of the cabinet and expected reform programs have yet to be disclosed.  In addition to the switch in Italy, Greece is also undergoing political change. Former PM Papandreou has step down from his position and Lucas Papademos has been chosen to succeed him on behalf of the new unity government. The new coalition government has been received very positively by citizens as more than 70% approved of the action in a recent poll.  He will have his work cut out for him right from the beginning as Greece looks to secure their 6th tranche in order to be able to pay for its upcoming maturities.  The Euro-crisis has directly led to major changes in governments across Europe, but will merely switching political parties and a few key officials be able to solve the structural debt issues of these countries?  How do you think this political action will play out going forward, and do you think that this political shake-up will continue to other Euro-countries as well?

Article: http://www.bloomberg.com/news/2011-11-14/monti-asked-to-lead-new-italian-government-to-fight-debt-crisis-contagion.html