Monti Threatens to Resign if No Eurobonds; Specter of Early Elections

Courtesy of Google Translate, via a link posted on the Guardian Live Blog, please consider this choppy clip from Monti: EU summit difficult But Knight gives the alarm

Perhaps the Prime Minister Mario Monti has finally accepted the ultimatum of Cav and decided to download Frau Merkel. Perhaps the government, dealing with the preparation of the European Council of 28 and 29 June, will have a movement of pride and will be presented in Brussels slamming his fists on the table. Perhaps, indeed. For now, sources close to Palazzo Chigi, Monti wants to ensure that clamped down on the German Chancellor. A professor there to shake the thought that Silvio Berlusconi has decided to launch an ultimatum to the government "should immediately change direction." At the end of the summit with Prime Minister, Cavalieri, the actual government falters in an absolute uncertainty and that, to get himself out of this impasse is to take a firmer line in Europe: "We are left with a feeling of uncertainty about the proposals Italy will do.

In the last hours, however, the prime minister would even toyed with the idea of a stroke effect to force Merkel to put aside his nein the eurobond and a loosening of the line of rigor in favor of investment and spending policies, capable of giving the necessary shot back to growth in the eurozone. "If the Chancellor does not give up I will tell you that I resign because if things do not change are not able to bring Italy out of the abyss", he suggested doing Monti lever on the bogeyman of the political crisis that would bring Italy under the attack of speculators. On the other hand, Merkel knows all too well that the fall of Rome would mean the final collapse of the 'euro with perspectives that would put the shivers even in Berlin.

Specter of Early Elections

Early elections in Italy are certainly not on the wish list of nannycrats. Yet early elections appear increasingly likely.

Monti would not survive such an election. The economic situation in Italy worsens every week. People are becoming increasingly frustrated, not only with government in general but with the euro itself.

For details please see Italy "Gasping Like Beached Whale"; Berlusconi Reiterates Euro Exit "Not Blasphemy"; Beppe Grillo Discusses "Taboo of the Euro"

Five Star Movement

Beppe Grillo and his Five Star Movement gains momentum every day. Grillo supports an exit from the eruorzone and the Five Star Party is now the second largest party in Italy.

Former Italian Prime Minister Silvio Berlusconi is leader of the PDL, Italy's third largest party. Berlusconi is now anti-euro, as is the Northern League. These are very significant events.

For more details, please see Six Reasons Why Italy May Exit the Euro Before Spain; Ultimate Occupy Movement.

Also note Monti Begs Germany to Stabilize Interest Rates; Merkel Pours Cold Water On "Theoretical Discussions"; Italy Official Denial #1; Why Monti's Days Are Numbered.

The nannycrats do not want Monti to resign nor do they want early elections.

However, delays in calling for elections actually plays into opposition hands. Each passing day weakens Mario Monti, and each passing day strengthens the anti-euro movement in Italy.

“See you in the next Parliament” Beppe Grillo said after the local elections in May.

Let's hope so.

Addendum:

I did not understand the phrase "ultimatum of Cav" so I pinged a friend "Andrea" who is from Italy but now lives in France.

Andrea explains ...

"Cav is short for Cavaliere, a nickname for Berlusconi. The site Il Giornale (where you found the article) is owned by Berlusconi and is therefore very Berlusconi friendly. The newspaper nickname him the Cav."

She also added the article states ...

"In a meeting he had with Monti, Berlusconi complained that there is absolute uncertainty about what the EU will adopt at the upcoming summit. Berlusconi sought a much tougher position on Merkel noting the discomfort many of his party representatives and senators face in supporting Monti's government."

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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