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                   Italian Political Gridlock Threatens Euro

   by Al Pessin

   Italy is in a political deadlock following an election late last month
   that left parliament divided almost equally among three factions.
   Meanwhile, the country's economic crisis continues, threatening the
   stability of the euro zone.
   Italians surprised the world, and perhaps themselves - splitting their
   vote among disgraced former Prime Minister Silvio Berlusconi, a
   center-left coalition and a protest movement led by a former comedian.
   The current prime minister, an economist praised by the international
   community, got only 10 percent of the vote.
   Retired couple Gabriella Magini and Mario Pezzella were as surprised as
   anyone.  They worry about their finances, and even more about their
   grandchildren.
   "If I think of the future, I'm not terribly optimistic, no.  I think
   uneasiness is the most spread out feeling all over Italy," she said.
   And there is good reason for concern.  Unemployment is nearly 12
   percent.  Italy has had virtually no economic growth for more than 10
   years.  It struggles to pay the interest on its huge debt and it needs
   extensive reforms to make it competitive again.  And now, the
   parliament is deadlocked.
   "This is, I think, the worst outcome, the worst scenario that we could
   have hoped for," said economics professor Nicola Borri.
   He says even if a government is formed it will not have the power to
   take the necessary steps to revive the Italian economy and end talk of
   a collapse of the 17-nation euro system.
   "We could find ourselves in a situation in which it's really hard,
   politically, to service our debt.  And, you know if Italy decides not
   to service its debt anymore, I think that the euro zone is over," said
   the professor.
   European leaders are determined not to let that happen.  And at least
   one longtime Italian analyst, Andrea Margelletti, believes his country
   will get through this economic, and now also political, crisis.
   "We have to study the results and to find a good, I may say, way to
   find an `Italian Solution," he said.
   Such optimism does not impress Professor Borri.
   "When we say `Italian Solution,' we mean some agreement that doesn't
   deliver any reforms.  So, if that is an `Italian Solution,' personally,
   I don't like it." he said.
   And neither do Gabriella and Mario, who have seen their pensions frozen
   while prices go up, squeezing even relatively well-off people like
   them.
   "It has been an awful surprise for us, for the majority of people,"
   said Gabriella.
   "I hope in the future.  I think the Italian people are so strong, so
   intelligent, to solve the crisis," said Mario.
   But that is more difficult than ever now, with a paralyzed parliament.
   No one expects much progress at least until after new elections, which
   could come before the end of the year.
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   [1]http://www.voanews.com/content/italian-political-gridlock-threatens-
   euro/1616230.html

References

   1. http://www.voanews.com/content/italian-political-gridlock-threatens-euro/1616230.html