The fat lady has sung: FTSE Milano -2.10%
To be honest, not many (including yours truly) expected for the Berlusconi speech’ to be well-received by the markets, but anyway we have the verdict now.
So what is next?
- mr. B to leave before the end of summer
- mr. Napolitano to appoint a new “technical” Prime Minister, mr. Mario Monti, supported by a “grosse koalition” PD+PDL (plus maybe FLI and UDC)
- quickly (in 12 months) enact a few key reforms: delete IRAP (paid for with the remodulation of state aids and disposal of some assets), change the electoral system, halve the number of paliamentarians, liberalize professions
- call new elections
Anyone wanna bet?