"The more the results come in, the more the fear grows that Italy will become ungovernable"
- John Plassard, vice president at Mirabaud Securities LLP
The centre-right coalition led by former Prime Minister Silvio Berlusconi is leading in the race for the Italian Senate, according to the latest polls. Earlier it was expected the centre-left taking a strong lead in both houses of parliament, a result which would guarantee austerity measures to combat a deep recession and stagnant growth. In case Silvio Berlusconi becomes the next Prime Minister, deep government instability could be anticipated, as well as the paralysation of a centre-left-led government. Berlusconi, who supports tax cuts, rebates and amnesties, pledged his readiness to pay 4 billion euros out of his own pocket to refund the property tax known as IMU.
"I'll take 4 billion euros of my fortune and I'll give it to Italians," Berlusconi said, citing a campaign mailer he sent. "My signature means that with that letter, anyone who paid the IMU can go to the judge and ask me to return the money if as prime minister I haven't done what I promised to do."
"The more the results come in, the more the fear grows that Italy will become ungovernable," said John Plassard, vice president at Mirabaud Securities LLP in Geneva. "Investors are concerned about Italy's improvements if Berlusconi should win…"
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