Jonathan Hopkin argues that austerity has failed to produce results in Southern Europe and calls for European leaders to reconsider their approach:
…..perhaps the most important result of the election is that it will likely prove to be a turning point in the way in which the European Union deals with the debt crisis in the South. As was the case in Greece, the attempt to impose technocratic rule on a debtor nation to implement austerity and reform has been a political and economic disaster…… The Monti experiment produced no clear economic gains and has been decisively rejected at the polls. It would be reckless in the extreme of Europe’s leaders not to reconsider their approach.
via Far from being a disaster, the results of the Italian election could be a turning point for Italy and the Eurozone. | EUROPP.
Only the ECB has the necessary firepower to move the market. Senior German officials say the ECB’s help is what [Italian premier Mario] Monti has really been after all along. The Italian leader is convinced that the June 28 summit provided political cover for the ECB to take bold action, in the knowledge that euro-zone governments—including Germany—won’t oppose it.
“I have no doubt that the night before the disintegration of the euro, the ECB will do whatever is necessary to save it,” Mr. Monti says. “The question is: Do we need to get to the night before?”
via Italian’s Job: Premier Talks Tough in Bid to Save Euro – WSJ.com.
[Silvio] Berlusconi, who failed to secure a majority in a crucial vote on Tuesday, stepped down as prime minister after parliament passed a package of measures demanded by European partners to restore market confidence in Italy’s strained public finances.
Former European Commissioner Mario Monti is expected to be given the task of trying to form a new administration to face a widening financial crisis which has sent Italy’s borrowing costs to unmanageable levels.
via Berlusconi resigns, crowds in Rome celebrate | Reuters.