Italian economy takes hit after PM announces resignation
(Vatican Radio) Italy stocks declined Monday, two days after Italian Prime Minister
Mario Monti's announced his resignation following a meeting with President Giorgio
Napolitano. Monti announced he would resign as soon as the 2013 budget is passed.
The vote was already scheduled for no later than April and will now likely take place
in February. His imminent resignation, in conjunction with former prime minister Silvio
Berlusconi’s plan to run for office, have sparked concerns with regard to Italy’s
economy.
James Walston, associate professor of international relations and
Italian politics for American University of Rome, spoke with Vatican Radio about what
Monti’s resignation will mean for the country.
“The problem with the resignation
is that it creates a situation of instability and unpredictability, and that is bad
for the market, and it is also bad for the medium term planning of the economy.”
“The
biggest single problem in Italy is the uncertainty,” Walston went on: “until last
week there was a reasonably clear presumption of what was going to happen over the
next two or three months. Now, things are much less clear.”
Listen to
Ann Schneible’s full interview with James Walston: