2012-12-10 13:47:30

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: RealAudioMP3







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