ZCZC
BCN-20
ITALY-POLITICS-STOCKS
Milan stocks surge after president vetoes eurosceptic minister
MILAN, May 28, 2018 (BSS/AFP) – The Milan stock market rose sharply early
Monday after President Sergio Mattarella vetoed the nomination of fierce
eurosceptic Paolo Savona as economy minister.
The move enraged the anti-establishment Five Star Movement and far-right
League, and prompted their prime minister-elect to step aside.
The president looks set to appoint a pro-austerity economist formerly with
the International Monetary Fund to lead a technocrat government, ahead of
possible new elections in the autumn.
“Mattarella has made it clear that he will not allow any policy that could
put Italy on a slippery slope towards a major confrontation with the EU that
could potentially jeopardise Italy’s euro membership,” said Holger
Schmieding, an analyst with Berenberg.
Around 0725 GMT, the FTSE Mib index stood 1.2 percent higher at 22,670
points, having risen almost two percent at the opening.
Dealers said that the Italian government bond market also rose, as did the
euro.
BSS/AFP/HR/1330