FINANCIAL TIMES: Markets on Wednesday demonstrated a collapse of confidence in Italy’s ability to chart a clear course out of its political and debt crises, sending 10-year bond yields to new euro-era highs over 7.5 per cent and into territory that forced Greece, Portugal and Ireland to seek international bail-outs.
The turmoil prompted Giorgio Napolitano, Italy’s 85-year-old president, to intervene. He insisted that Silvio Berlusconi, prime minister, would resign soon and that parliament would pass reforms demanded by the European Union “in a matter of days”.
Opposition politicians said this could happen as early as Sunday or Monday. Mr Napolitano went on to say that following the prime minister’s resignation he would hold consultations with political leaders to form a new government “in a short time”, or he would dissolve parliament to hold elections “in a restricted time span”… (more)
