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20 Mar 2013
Forex Flash: Berlusconi has provided a path toward a new even if limited government - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that in Italy, Berlusconi has provided a path towards a new, but limited government by offering to support the PD´s Bersani as PM in exchange for a PDL candidate becoming president.
They see that the President in Italy is largely ceremonial but can appoint lifetime Senators (like Monti) and has an important role facilitating elections and new governments. Separately, they add that the EC indicated a willingness to allow Italy to borrow more to repay debts, especially to small and medium sized businesses, many on the verge of bankruptcy due to the uncollected funds from the government. They write, “The EC comments suggest these new borrowings would be not counted against its fiscal targets. Estimates of the government’s arrears range between EUR50-80 bln.”
They see that the President in Italy is largely ceremonial but can appoint lifetime Senators (like Monti) and has an important role facilitating elections and new governments. Separately, they add that the EC indicated a willingness to allow Italy to borrow more to repay debts, especially to small and medium sized businesses, many on the verge of bankruptcy due to the uncollected funds from the government. They write, “The EC comments suggest these new borrowings would be not counted against its fiscal targets. Estimates of the government’s arrears range between EUR50-80 bln.”