Political uncertainty continues in Italy

In Italy on Thursday, former European Commissioner Mario Monti won growing support to succeed Prime Minister Silvio Berlusconi and head a broadly based national unity government but now has to face the realities of Italian politics. A respected economist with connections at the top levels of European policy making, Monti has been seen for months as the most likely head of a caretaker government that could pass vital reforms before elections in 2013.

A long-time observer of Italian politics who has taught courses in political philosophy at the Pontifical Gregorian university, Prof. Giorgio Salzano says Monti could lead a government of national unity. "He seems to be a very competent, reliable person," said Salzano. The professor added, however, that he has some concern over the very notion of a "technical" government. "that is very questionable," he said, explaining that many of the issues facing the country are essentially political, even though they involve technical economic and financial matters. He went on to say that a government of national unity - with a political mandate - might be able to help the country weather the political and financial storm. "If there were the capability to realize it, it wouldn't be so bad. I see it difficult, because the [political] contrasts have become so stressed. But, if we could say 'we are in the same boat, and we have to try to come out of it together', it wouldn't be so bad." The prospect of an Italian government led by Monti did help calm market jitters Thursday, and Italy was able to sell €5 billion in in 12-month bonds at an interest rate of 6.087 percent. Though that's up sharply from 3.57 percent in the last such auction last month, it was well below analyst expectations of 7 percent. Demand for the bonds was also strong, almost twice the amount on sale. Listen