A new technocratic government has been formed by former European Commissioner Mario Monti. Monti is himself an economist and technocrat. The government will attempt to bring back Italy from the brink of economic disaster because of its debt. Monti also hopes that the formation of the new government will help calm financial markets.
The government contains no politicians at all! So much for democracy. This is government of the people by the technocrats for the banks. Corrado Passero who is the CEO of Italy's biggest bank will head the industry and agriculture portfolio.
An austerity program is to be presented before the Senate later this week. There will probably then be a confidence vote in both houses. The government is expected to have wide support among many parties.
Recently Italian 10 year bonds have seen interest rates soar to over 7 per cent. This is the level at which Greece and Ireland were forced to seek bailouts.
Monti wants his government to last until the next scheduled elections in 2013. However, the politicians may not allow him that much time. For more see this article.