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Italy votes against austerity leaving EU in turmoil

Posted By admin On February 27, 2013 @ 6:31 am In Money Watch | Comments Disabled

Ian Traynor, John Hooper and Phillip Inman
London Guardian [1]
Feb 27, 2013

Three years of German-led austerity and budget cuts aimed at saving the euro and retooling the European economy was left facing one of its biggest challenges as Italian voters’ rejection of spending cuts and tax rises opened up a stark new fissure in European politics.

The governing stalemate in Rome and the vote in the general election – by a factor of three to two – against the austerity policies pursued by Italy’s humiliated caretaker prime minister, Mario Monti, meant that the spending cuts and tax rises dictated by the eurozone would grind to a halt, risking a re-eruption of the euro crisis after six months of relative stability.

Fears that the deadlock will lengthen Italy’s near two-year recession and spill over into the rest of the eurozone hit markets across Europe. The Italian banking sector fell 7% in value, dragging the main MIB stock market index 4% lower.

The market turmoil in Milan spread to Germany, France and the UK, with domestic banks among the biggest fallers. Deutsche Bank saw almost 5% knocked off its value, while Barclays suffered a 4% decline. The FTSE 100 fell 1.4%. The German Dax slumped more than 2% and the Paris Cac was down 2.75%.

Full article here [1]


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URLs in this post:

[1] London Guardian: http://www.guardian.co.uk/world/2013/feb/26/italy-election-austerity-eurozone-turmoil

[2] ECB Riots Begin in Italy as Globalist “Super Mario” Forces Austerity: http://www.prisonplanet.com/ecb-riots-begin-in-italy-as-globalist-super-mario-forces-austerity.html

[3] RUMOR: Spanish Government May Backtrack On Austerity, Attempt To Close Gap With Big Tax Hikes: http://www.prisonplanet.com/rumor-spanish-government-may-backtrack-on-austerity-attempt-to-close-gap-with-big-tax-hikes.html

[4] Italy’s army may interfere against violent protests over economic woes: http://www.prisonplanet.com/italys-army-may-interfere-against-violent-protests-over-economic-woes.html

[5] More austerity needed in Greece: EU/IMF: http://www.prisonplanet.com/more-austerity-needed-in-greece-euimf.html

[6] Beppe Grillo: “Italy Is Already De Facto Out Of The Euro”: http://www.prisonplanet.com/beppe-grillo-italy-is-already-de-facto-out-of-the-euro.html

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