Despite a deal worked out with Greece’s leaders to support its latest bailout, the eurozone still battles market unrest as the leadership of both Greece and Italy is up in the air.
Prime Minister George Papandreou agreed over the weekend to resign, once a unity government has been created to oversee the execution of austerity measures and set the stage for early elections. That was expected to reassure markets, but no successor has been decided.
And the market picture on Monday was far from rosy as Italy’s Prime Minister Silvio Berlusconi refuted rumors that he was on the verge of stepping down, insisting he would continue to serve through 2013. European markets, inlcuding the DAX and the CAC 40, were down a little more than a half percentage point in Monday trading.
The failure of the Berlusconi government to reach consensus on austerity measures has been a constant thorn in the eurozone’s side, and now attention has turned to Rome since Athens has apparently resolved its bailout issue.