Italian election impasse roils world markets, shakes Europe
World markets rattled as alarm bells set off across Europe after Italian election ends at an impasse
World markets were rattled and alarm bells were set off across Europe yesterday after the Italian election ended at an impasse, failing to produce a clear winner and providing a shock debut for a populist anti-austerity party.
The Milan stock market plunged and Italy's borrowing rates jumped after centre-left Democratic Party leader Pier Luigi Bersani scraped a razor-thin victory in the lower house of parliament but the Senate remained up for grabs.
Stock markets in Europe, Asia and America also fell on fears of instability in the euro zone's third biggest economy.
European capitals, which fear the deadlock could plunge Italy back into the debt crisis storm, sounded alarm.
"It's a leap into the unknown, which bodes poorly both for Italy and the rest of Europe," said Spanish Foreign Minister Jose Manuel Garcia-Margallo.
It's a leap into the unknown, which bodes poorly both for Italy and the rest of Europe
Silvio Berlusconi's right-wing forces came a close second, winning 29.18 per cent of the vote to 29.54 per cent for Bersani in the lower house. A third force - the populist, anti-government Five Star Movement (M5S) of former comic Beppe Grillo - won 25.5 per cent.