Mario Monti’s resignation puts Italy and its dysfunctional political system back under market watch. But that may not be a bad thing.
The position of the Italian prime minister was looking more fragile by the day. His premature resignation surprises nonetheless. Silvio Berlusconi, whose conservative Popolo della Liberta (PdL) party had supported his successor’s technocratic government since it was formed a year ago, recently began attacking it ahead of next year’s general election. Berlusconi’s announcement that he would run for the prime minister’s job, coupled with comments by his deputy were the final straw. Over the weekend Mr. Monti decided to resign once a budget law is passed.