Prospect of Renzi govt given warm reception
IMG class=hide alt=”Prospect of Renzi govt given warm reception” src=”http://www.mineralfossil.com/wp-content/uploads/2014/02/wpid-b40b70ff3c9450947aef4b3c00584c9b.jpg” (By Sandra Cordon) (ANSA) – Rome, February 14 – European leaders expressed interest Friday in the prospects of a new Italian government led by Democratic Party (PD) leader Matteo Renzi while financial markets cheered the prospects for change. PHowever, political opponents of the PD said the resignation of Enrico Letta as Italy’s premier, clearing the way Renzi to take on the position, illustrated the problems with the current system of politics as usual./PPRenzi effectively pulled the plug on Letta’s cabinet when he requested the PD withdraw support at a party meeting Thursday so he could create a new executive to drag Italy out of the “quagmire”. He is now tipped to get a mandate to form an executive from Napolitano and if Renzi takes the post he will, at 39, be the youngest premier in Italy’s history and the country’s third consecutive non-elected premier in two years. Analysts said investors seemed confident that Renzi will enact reforms to Europe’s fourth-largest economy that could boost economic growth. “The markets seem to positively judge the potential new government…although it is premature to draw definitive conclusions,” Citigroup said in a note./PPItaly’s premier financial market ended the trading day Friday sharply higher, with the FTSE Mib closing up 1.62% at 20,436 points, its highest level since July 2011 and one of the strongest gains among European exchanges on the day./PPThe spread between Italy’s 10-year bond and its ultra-safe German counterpart also narrowed slightly during the day, closing at 200 basis points after ending the previous day at 204 basis points./PPYield on Italy’s 10-year paper dipped slightly to close trading at 3.68%, down from 3.70% at Thursday’s close./PPThe European Commission said it was confident of Italy’s determination and ability to press on with fiscal-consolidation reforms under a new government as well as meet its obligations to Europe./PP”We will continue to work with Italy in view of the six-month (duty presidency) of the EU,” starting from July 1, said EC spokesperson Pia Ahrenkilde./PPEuropean Commission President Jos