FXstreet.com (Buenos Aires) – Today, the Italian lower house passed the latest budget package, aimed to rescue Italy from its financial crisis, and clearing the way off Prime Minister Silvio Berlusconi. The PM resigned as promised after the budget was approved, generating crowds of jubilating Italians that celebrated in the streets his departure. Mario Monti is expected to replace him although there has not been yet a formal announcement.
The Italian bonds spread yields jumped earlier this week to 7.6%, the same level that triggered bailouts from the ECB and the IMF, for Portugal, Ireland and Greece. The euro has recovered some ground past Friday, thus closed the week below 1.3800. The euro zone contagion fears that menace the currency over the beginning of this 2011, finally exploded over the past few weeks and already two PM had resigned over the crisis, being the other one, George Papandreou from Greece, who has been replaced by Lucas Papademos, a doctor in economics.
If this is what it takes to save the euro zone, is something yet to be seen over the upcoming years, as the crisis is only starting. However, investors had adopted a more positive outlook, while attention this week will remain focused both in Italy and Greece, waiting for actionable steps that help mitigate the crisis and the spiraling debt issues.
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