The yield on Italy’s bonds crossed the red line of seven per cent on Monday, as the planned resignation of Prime Minister Silvio Berlusconi failed to reassure jittery investors. Analysts told Reuters Italy is now in a situation similar to the one that forced Greece, Ireland and Portugal to seek bailouts. The markets had long been pushing for the reform-shy leader to leave the helm of Italian politics, but optimism about his planned departure quickly turned to panic among fears that Berlusconi’s resignation won’t end paralysis and uncertainty in the country.
Looking for more?
Get the best of Maclean's sent straight to your inbox. Sign up for news, commentary and analysis.