Germany, Italy frightening chaos. Merkel sees the U.S. Secretary of State Kerry Lavrov and Russian, is likely to discuss Italy. Media titles alarmed. The Guardian: “Possible fuse of a global financial crisis“
Good morning. European financial markets are expected to tumble this morning after Italy’s general election left the country deadlocked.
After a dramatic day in Italy, the centre-left group led by Pier Luigi Bersani has won a narrow victory in the lower house of parliament.
The Senate, though, appears to be deeply split with no party winning sufficient seats to control it.
And the really big shock for the European establishment is the success of the Five Star Movement, led by comedian Beppe Grillo. It has won more votes than any other party – a remarkable achievement, which shows deep anger in Italy against the political status quo.The uncertainty in Italy has sent the euro reeling, now down by nearly 3 cents against the US dollar since the first predictions from Italy.
It just hit a low of $1.3034 – having received a thorough hoofing during an Asian trading dominated by talk that the the eurozone’s economic plans were in deep trouble.Shares in Italy’s two biggest lenders are being hammered – Intesa Sanpaolo is down 10%, with UniCredit falling 8.8%.
In Germany, as elsewhere in the Western media echoed the concern of governments. Poor Italy!, The editorial headline of Die Welt, liberalconservatore pro-government newspaper, pointing out the danger of the results for political stability. “Signal alarming, nearly half of Italians chose aggressively anti-European party line,” said the Frankfurter Allgemeine. In London, The Guardian speaks of “deadlock (paralysis, blocked situation) in Rome, which can become the spark that ignites the global financial crisis, after the recent weakening of the euro.” And in Brussels Le Soir, knowledgeable about the mood of the European Commission, said that the real winner is the populist Grillo. the future of the euro and Europe can not afford an Italy ungovernable. “