Change of guard in italy

Mr. Monti is like his Greek counterpart, Mr Papademos, a technocrat who is well-equipped to  
remove democracy and national sovereignty in Italy.  No doubt he will serve the interests of the Bilderberg Group and the banksters well.

Mario Monti replaces Berlusconi as Italian PM

Economist and former European commissioner appointed to pick members of emergency government after Berlusconi resigns.

Al Jazeera,
13 November, 2011

Italy's head of state has appointed economist and former European Commissioner Mario Monti to succeed outgoing Prime Minister Silvio Berlusconi and handle a crisis that has brought the eurozone's third largest economy to the brink of financial disaster.

Giorgio Napolitano, the Italian president, made the appointment on Sunday after talks with leaders of the two houses of parliament.

Monti must now draw up a caretaker cabinet and government of technocrats, lay out his priorities and determine whether he has enough support in parliament to govern effectively.

The announcement on Sunday followed celebrations in the streets of Rome over the departure of Berlusconi, who faced a chorus of jeers and insults as he was driven to the Quirinale Palace to hand his resignation to Napolitano on Saturday.

In a video message televised on Sunday, Berlusconi said he was pleased that the government had passed a budget vote in record time with more than 50 per cent of the reforms that were asked by the eurozone, in a demonstration that Italy will and can fulfil the measures as needed by its European partners.

He said that was a sign that he had honoured the confidence electors had given his party in 2008.

"Following the approval of the law, I have tendered my resignation as president of the council of ministers. I have done it so Italy could avoid being attacked by financial speculation," he said.

Berlusconi:

"...So it has been very sad to see my responsible, generous gesture being welcomed with booing and insults.

"But for the hundreds of demonstrators on the street, they should know we have done all we could to preserve our families from the global crisis that has hit Europe."

Pietro Paganini, a political commentator, told Al Jazeera that Berlusconi had "certainly not left behind an attractive legacy".

"Hopefully a new government will first give Italy credibility, which is what the markets demand."

For article GO HERE

Pressure on the ECB grows as Mario Monti rides to rescue

The European Central Bank (ECB) is under intense pressure to step up purchases of Italian bonds after premier Silvio Berlusconi finally relinquished power in Rome, clearing the way for former EU commissioner Mario Monti to form an emergency government of technocrats.

By Ambrose Evans-Pritchard, International Business Editor

9:14PM GMT 13 Nov 2011

the Telegraph,

13 November, 2011

The "halo effect" of Mr Monti helped bring Italian bond yields back from the brink of a catastrophic spiral on Friday but the gains are likely to be tested again as the new team faces the stark reality of Italy's fractured politics.

"The ECB must make it clear that it will not allow Italy's bond yields to rise above 5pc, however much it costs," said Thomas Mayer, chief economist at Deutsche Bank.

He described the current policy of half-hearted bond purchases as "a recipe for failure", signalling to markets that the ECB is not willing to see the job through with overwhelming force.

Britain's Business Secretary, Vince Cable, echoed the calls for bolder action, blaming the ECB's passive stand for the dramatic escalation of the crisis last week that pushed Italy's €1.8 trillion to brink of meltdown and spread contagion to France.

"The central bank has to have unlimited powers to intervene to support economies, and indeed banks, to prevent collapse," he told the BBC.

"It's very clear that in addition to the disciplines that the southern Europeans are going to have to adopt, the Germans are going to have to play their role in supporting the eurozone. That's either directly or through the central bank, making absolutely sure that the big countries that are subject to speculative attack are properly supported with adequate liquidity."

The EU's €440bn rescue fund (EFSF) is supposed to take the baton from the ECB so it can step back, but the fund is not yet ready and is itself struggling to raise money at a viable cost.

The replacement of Mr Berlusconi with a credible leader committed to the deep reforms demanded by the EU makes it much easier for the ECB to justify help for Italy, but it is far from clear that the bank is willing to give Mr Monti a "dowry" of lower borrowing costs to lighten his task.

Jens Weidmann, head of Germany's Bundesbank and a pivotal ECB governor, has further dug in his heels against any extension of bond purchases.

"We have a mandate and we have to stick to our mandate. Fixing an interest rate for a country is certainly not compatible with our mandate," he said over the weekend.

"The eurosystem must not be a lender of last resort for sovereigns because this would violate Article 123 of the EU treaty. I cannot see how you can ensure the stability of a monetary union by violating its legal provisions."

Investors are betting on a torrid relief rally across global asset markets this week on hopes that new leaders in Italy and Greece will at least break weeks of deadlock, but it is already clear that politics will remain messy.

Mr Berlusconi warned that his People of Liberty Party intends to exercise a de facto veto in Italy's Senate, maintaining its grip on power behind the scenes.

"We are ready to pull the plug," Mr Berlusconi allegedly told supporters. He aims to block any form a wealth tax or bank account levy.

Mr Monti faces a difficult task, forced to work with shifting alliances and bitterly opposed parties on one issue at a time.

"We won't give you a blank cheque," said Umberto Bossi from the Northern League.