EU left in chaos as Italy poll fears hit shares
MARKETS reacted anxiously yesterday after Italy’s general election produced a stalemate.
Shares and the euro fell as borrowing costs for the eurozone’s third largest economy jumped.
The FTSE 100 closed 1.3 per cent lower, wiping £20billion from Britain’s blue-chip companies.
Markets in France and Germany fell by more than two per cent.
The FTSE 100 closed 1.3 per cent lower, wiping £20billion from Britain’s blue-chip companies
No single party grouping secured a clear majority in the election.
A stunning comeback by disgraced ex-leader Silvio Berlusconi, 76, and a 25 per cent share of the vote for “anti-politics” comedian Beppe Grillo handed two former no-hopers potentially crucial roles in forming the next government.
EU-backed Mario Monti, installed as Prime Minister in 2011 to save Italy from bankruptcy, came fourth.
Spanish foreign minister Jose Manuel Garcia-Margallo y Marfil said: “This is a jump to nowhere.”