Berlusconi rules out alliance with Monti

Note: This section contains information in English only.
Source: Dukascopy Bank SA
"We all need to reflect on what we can do for Italy … I don't think Italy can do without being governed"
- Silvio Berlusconi

Silvio Berlusconi has ruled out an alliance with the former Italian Prime Minister Mario Monti on Tuesday and noticed that the results of elections are reflecting popular discontent with austerity measures. Berlusconi, who is considered to be one of Europe's most indefatigable politicians, got enough votes to deny its main rival of the parliamentary support it needs to form a stable government. However, the election results gave the centre-left coalition, led by Pier Luigi Bersani, a slight majority in the lower house, while no party got enough seats in Senate, where 158 seats are needed to govern. Bersani's party won 119 Senate seats, while Berlusconi's centre-right took 117 seats. Soon after the results, Italian 10-year bond yields rose to 4.87%, up from Monday's 4.448%.

"We all need to reflect on what we can do for Italy … I don't think Italy can do without being governed," Mr. Berlusconi said in his first, and unusually muted, public remarks on Monday's election results. "Everyone needs to think what good can be done for Italy and this will take some time."

"They can't hold us back any longer," Grillo said late yesterday in a video posted to his website. "They might go on another seven or eight months and produce a disaster, but we will be watching and working to keep it under control."
© Dukascopy Bank SA

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