Italy: Swift transition of power - Rabobank

Bas van Geffen, Quantitative Analyst at Rabobank, notes that the euro regained some ground on the back of a seemingly swift transition of power from outgoing Italian PM Renzi and his replacement, Gentiloni.

Key Quotes

“Mr. Gentiloni quickly reshuffled the current government, in an attempt to keep business going as usual, or at least as usual as we can get it nowadays. Indeed, it wouldn’t be Italian politics without some drama: While it is expected that Gentiloni should find broadly the same support from the other political parties that Renzi also enjoyed, a small centre-right party indicated that it might not support the new prime minister. Should all senators of this centreright faction actively take stance against the new government, this could see PM Gentiloni just short of a majority as he faces votes of confidence in both houses of parliament later in the week.”