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Trading news
20 Mar 2013
Forex Flash: Five Star Movement complicates efforts to ease turmoil - Nomura
FXstreet.com (Barcelona) - Richard Koo, Chief Economist at the Nomura Research Institute notes that Mr Grillo´s Five Star Movement has elicited a great deal of concern, with some fearing it could spark a new round of political turmoil.
He adds that Mr. Grillo is not only a well-known comedian but has a quick mind, is a good speaker, and is very ambitious. His key slogan exhorts voters to change Italy itself, not just change Italian politics, and he built up a strong grassroots organization prior to the election. Further, Koo adds that Mr. Grillo has so far rejected the possibility of a coalition with one of the existing parties, which to his followers symbolize the old political order. Five Star’s 25% share of the vote however, means that former Prime Minister Silvio Berlusconi’s center-right party is likely to play a role in forming a government with the remaining parties. However, he writes, “But if the left-of-center parties that supported the reforms are forced into a coalition with Mr. Berlusconi, the popular image of the reforms could be sullied by the alliance with the old guard, lending further momentum to Five Star.”
He adds that Mr. Grillo is not only a well-known comedian but has a quick mind, is a good speaker, and is very ambitious. His key slogan exhorts voters to change Italy itself, not just change Italian politics, and he built up a strong grassroots organization prior to the election. Further, Koo adds that Mr. Grillo has so far rejected the possibility of a coalition with one of the existing parties, which to his followers symbolize the old political order. Five Star’s 25% share of the vote however, means that former Prime Minister Silvio Berlusconi’s center-right party is likely to play a role in forming a government with the remaining parties. However, he writes, “But if the left-of-center parties that supported the reforms are forced into a coalition with Mr. Berlusconi, the popular image of the reforms could be sullied by the alliance with the old guard, lending further momentum to Five Star.”