European Commission
President Jean-Claude Juncker on Thursday said the EC must
prepare for a "non-operational government" in Italy after the
March 4 general election.
He said this would be "the worst scenario".
Juncker said that "a strong market reaction in the second
half of March is possible, we're preparing for this scenario".
Most polls have shown that the election will produce a hung
parliament.
The spread between Italian and German 10-year bond yields, a
gauge of Italy's borrowing costs and of market confidence in the
Italian economy, widened to 138 points Thursday, from 134 at the
start of the day, after Juncker's warning.
Premier Paolo Gentiloni responded to Juncker's fears by
saying "I will reassure him, in any case all governments are
operational, governments govern".
Gentiloni is set to meet Juncker in Brussels Thursday
evening.
Gentiloni said that the March 4 general election would not be
a "leap in the dark".
He said "I don't agree in seeing these elections as a leap in
the dark, it will certainly be important that more reliable
forces, and from my viewpoint especially the centre left, will
have a fundamental role so as not to throw away the results
reached".
He said "I'm not afraid of the abyss, Italians want
continuity".
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