Italy political crisis affects economy

Italy’s political crisis has affected the country’s economy as Rome continues to grapple with a lingering recession.

According to AFP, on Monday morning, Italy’s blue chip index, FTSE MIB, slumped more than 2 percent.
The political crisis also caused the 10-year yield on the market for the government bonds to jump to 4.65 percent on the same day.
The crisis engulfing Italian Prime Minister Enrico Letta’s coalition government is mainly triggered by former Italian Prime Minister Silvio Berlusconi’s center-right People of Freedom (PDL) party.
On Saturday, all Italian ministers from Berlusconi’s party resigned en masse in protest to the government’s order to increase sales tax.
On the same day, Italian President Giorgio Napolitano pointed out that he did not want new polls in the country.
He said in the city of Naples “We need a parliament that discusses and works, not that breaks up every now and then.”
The Italian president added, “We do not need continuous election campaigns, we need continuity of the government’s actions, decisions and its measures to resolve the problems of this country.”