Brussels, 09/11/2011 (Agence Europe) - “Fears of a sustained period of government and parliament inactivity are totally unfounded and, at any rate, emergency measures can be adopted at any time, if necessary”, said President of the Italian Republic Giorgio Napolitano on Wednesday 9 November, adding that there was “absolutely no uncertainty” over the planned resignation of Prime Minister Silvio Berlusconi and on the fact that the “stability law” (to implement fiscal consolidation measures promised to the EU) “will be passed in the next few days”. It was confirmed that voting would take place by Saturday thanks to agreements between the Speakers of the two Houses of parliament and the leaders of the parties. The prime minister confirmed that he would stand down as soon as this law was passed by the two houses, thus removing any lingering ambiguity.
Time is of the essence: with the Italian debt again being the target of financial markets, rates on 10-year bonds bursting through the fateful 7% threshold (peaking at 7.35% during the day) and a spread of 541 points in comparison German rate (“Bund”), the EU fact-finding team which arrived in Rome on Wednesday morning, urged the government immediately to adopt robust measures along the lines of those called for by the European Central Bank in August, measures able to meet the situation on the markets. The suggestion here was that the measures Italy will have to take should go further than those promised in the Berlusconi programme. The head of the employers' organisation, Emma Marcegaglia, was equally categorical: action had to be taken immediately and the credibility of the country had to be restored at all cost, she said, otherwise Italy would no longer have access to the financial markets.
In the meantime, the European Central Bank intervened again during the day, buying up Italian Treasury bonds.
In Italy, political discussion on putting in place a new government made up of technocrats is progressing and the name most often cited to lead it is that of Mario Monti. (FG/transl.rt)