Italian Election Means New Stress for Eurozone

FRANKFURT, Germany (AP) -- The surprise announcement that Italy's Prime Minister Mario Monti is to resign is putting new stress on Europe's efforts to get control of its debt crisis.

Markets in the 17 European Union countries that use the euro had been calmer for three months -- since the European Central Bank said it was willing to intervene in government bond markets and drive down borrowing costs for indebted countries.

Now investors wonder whether Italy, the third largest eurozone economy, will give up on reforming its economy and reducing its debt load. That is on top of fears Greece will continue to struggle, and suspense over whether Spain will ask for bailout money.

Analysts on Monday were not predicting a meltdown just yet -- but it all hinges on Italy's new government.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2146606, ~/Articles/ArticleHandler.aspx, 7/23/2014 9:07:17 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.