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Tuesday 21 August 2018

Talks held in Italy amid political crisis

Investors are concerned that a new election could become a referendum on whether Italy will stick with the euro currency.

Premier-designate Carlo Cottarelli, centre, gets in a car as he leaves his hotel in Rome (Angelo Carconi/ANSA via AP)
Premier-designate Carlo Cottarelli, centre, gets in a car as he leaves his hotel in Rome (Angelo Carconi/ANSA via AP)

By Associated Press Reporter

Italy’s premier-designate Carlo Cottarelli has returned to the presidential palace for informal consultations amid continued market turmoil and uncertainty about the prospects of his proposed government.

Milan’s stock index opened slightly higher on Wednesday after Asian markets slid on investor concern that a new election could become a referendum on whether Italy will stick with the euro currency.

The uncertainty rose after President Sergio Mattarella’s designation of Mr Cottarelli, a former IMF official, to head a politically neutral government failed to calm markets.

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Italian president Sergio Mattarella (Fabio Frustaci/ANSA via AP)

The appointment also riled populists, whose attempts to form a government were quashed by Mr Mattarella over their designation of a Eurosceptic economy minister.

Mr Cottarelli returned for informal discussions on Wednesday with Mr Mattarella after asking for more time to come up with a list of cabinet ministers, and left without comment.

Press Association

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