EURO DEBT CRISIS CONCERN TO CONTINUE
The euro is not out of danger yet as the situation in Italy sparks new concerns in the region. Italy may be forced to cast a new election this year after last week's vote ended in a political deadlock with the electorate disagreeing to austerity measures.
European financial ministers have pressed for budget cuts in order to end the debt crisis. Beppe Grillo won 25% of votes with his anti-spending cut policies and a call for a referendum on EU membership. Bersani, who won the majority of the votes, must find enough backing in parliament to form a government otherwise the country will return to the polls.
The euro has edged lower versus the dollar 0.18% and 0.12% against the sterling. Market sentiment has weakened with US lawmakers failing to avert spending cuts. Further, preliminary data from the Eurozone showed consumer price inflation falling to 1.8% and unemployment rising to a record high of 11.9%.
Ministers are expected to meet today in Brussels to discuss such issues including a bailout for Cyprus.