A Comment on Events in Italy

Finally, Italy has a chance to get out of the impasse, and the morass, that it has been in under Berlusconi. Elected in 2008 with the large majority needed to produce the major structural reforms needed for an economy in decline, Berlusconi did nothing—which was a replay of his previous term in office. If President Napolitano were to get Berlusconi’s resignation and put in his place a ‘technical government’ to oversee the economy while new elections are prepared, chances are that Italy will be able to pull itself out of the mess it is in, by calming the markets as it finally begins to reform.

Link: Berlusconi Loses Governing Majority (Wall Street Journal 11/9/11)