Mario Monti becomes new Italian Prime Minister

Mario Monti, a member of Friends of Europe’s Praesidium and former EU Commissioner, has become Italy’s new Prime Minister on November 16. Italian President Giorgio Napolitano offered him the post less than 24 hours after the resignation of Prime Minister Silvio Berlusconi, saying Italy could not afford elections during this difficult time. Monti will have the difficult task of reassuring sceptical markets and investors that Italy can cut a 1.9 trillion-euro debt load. “Italy must return to being one of the elements of strength and not weakness of the European Union,” Monti said after his appointment.

The Italian decision has been welcomed by the EU as the FTSE MIB stock index rose 1.7 per cent following the announcement. The move is seen as a positive step for the country’s finances with new economic measures scheduled to be adopted by the Parliament soon after the appointment; however there are divisions amongst Berlusconi’s party on whether to back the new government with it’s formerly neo-fascist wing favouring a snap election instead. Monti will most likely have to form a cabinet of non-party “tecnocrats”, as much of the Parliament will be in opposition, raising some doubts over the sustainability of the new government.

Mario Monti spoke at Friends of Europe's annual State of Europe VIP Roundtable debate.