Verdict: it’s over!

The fat lady has sung: FTSE Milano -2.10%

click for Milan Stock Exchange site with live stats

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?

  1. mr. B to leave before the end of summer
  2. mr. Napolitano to appoint a new “technical” Prime Minister, mr. Mario Monti, supported by a “grosse koalition” PD+PDL (plus maybe FLI and UDC)
  3. 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
  4. call new elections

Anyone wanna bet?

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