Forex Flash: Italian situation ‘desperate’ – Deutsche Bank

FXstreet.com (Barcelona) - In Italy, the PM-designate Enrico Letta continued in his efforts to form government. Early yesterday there were reports that the situation was desperate, but later the center-right's Angelino Alfano said that progress was being made toward an agreement to form a left-right coalition after meeting with Letta yesterday.

According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “Alfano warned that issues on economic policy must be resolved before the conservative bloc would join the centre-left in a coalition government. Mr. Alfano made clear that their priority was to resolve the issue of a property tax that Berlusconi pledged to abolish during the February elections.”