May 31, 2018
Italian Political Crisis – What’S Going On?
Advisor Bulletin – 31 May 2018
The Eurozone’s third largest economy has been engulfed in a political crisis that has seen Italian bond spreads jump and European markets fall. Despite a healthy rebound in equity markets and drop in Italian bond yields from a high of 2.9%, uncertainty remains over the outcome of Italian political negotiations to form a government. Italian elections took place in March and saw two populist parties gain power in a coalition, the 5-Star party which won 32% of the vote, and the far-right League party, which won 18%.