Forex Flash: Italian government could take office in days – Deutsche Bank

FXstreet.com (Barcelona) - In Europe, Italy's President Napolitano is set to announce his choice of PM to form a new government today. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “The new coalition government could take office in a matter of days and would be backed primarily by the rivals on the center-left and center-right.”

These are the same parties that had refused to reach a deal since national elections in late February. Former PM Amato is said to be a leading candidate to receive the pole position although the mayor of Florence, Matteo Renzi and center-left deputy leader Enrico Letta have also emerged as possible candidates. Berlusconi's PDL, the center-left PD and the centrist Civic Choice movement have all said they would cooperate with whoever Napolitano chooses.