Italy crisis: Mario Monti moves to form new government
Baku, November 14 (AZERTAC). Mario Monti is starting work to form a new government to lead Italy out of its acute debt crisis which prompted the resignation of Silvio Berlusconi. The appointment of Mr Monti, an ex-EU commissioner, was announced by Italy`s president on Sunday. Mr Monti said he wanted to build "a future of dignity and hope" for Italy`s children. The first test of his appointment will come with the opening of European financial markets on Monday. Asian stocks have already risen in early trading. Hong Kong`s Hang Seng index surged to 2.4% and the euro rose against the dollar on Asian markets. Another test on Monday will come when Italian government bonds are auctioned. The interest rate at which the bonds sell will reflect whether the markets have confidence in Mr Monti`s ability to rescue Italy from debt. The former prime minister, Silvio Berlusconi, was forced to resign when the yield on Italian bonds rose to over 7% last week, the rate at which Greece, Ireland and Portugal were obliged to seek bailouts from the EU. Mr Monti, a 68-year-old economics professor, refused to set a timetable for the formation of a new government, and would not say who he planned to nominate as ministers. But he said consultations would start on Monday. The formal confirmation of the new technocratic government could take several days. Italy`s borrowing costs have spiked, threatening the eurozone. Hailing Mr Monti`s appointment, EU leaders vowed to monitor Italy`s austerity measures. President Giorgio Napolitano held 17 meetings with senior politicians before nominating Mr Monti as Prime Minister. Most parties, including Mr Berlusconi`s, approved his nomination. Speaking to reporters shortly afterwards, Mr Monti said: "Italy must again be and must increasingly be an element of strength, not weakness, in a European Union that we helped found and in which we should be protagonists."
"We will aim at solving the financial situation and resume the path of growth, while remaining attentive to social equity". Mr Monti promised he would act "with urgency" and said he would work with parliament "to get out quickly from a situation which has elements of an emergency but which Italy can overcome with a united effort". Mr Napolitano said the nomination was not about overturning the result of the elections of 2008 - but Italy needed a government that "could unite the diverse political forces in an extraordinary effort warranted by the current financial and economic emergency". Asked about the lifespan of a Monti government, Mr Napolitano said this depended on "the actions of the government, the reaction of the economy, of the markets, investors, of the European and international institutions".
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