European Politics in focus start of week: Italian election / German coalition risks

Ross J Burland FXStreet

A positive for the euro at the start of this week comes as SPD members approved a coalition with Merkel's CDU/CSU over the weekend with a vote of 66.02%, (78.3% of SPD members participated in the vote).

A cabinet will be put together this week

Markets await the outcome of the Italian elections

Meanwhile, traders will be looking out for the results of today's elections in Italy in an election will a number of potential outcomes. The markets fear political gridlock today after a campaign marked by anger over the listless economy, high unemployment and immigration. Voting was underway in Italy when polling stations opened at 7 am, local time, where pollsters were predicting that former prime minister Silvio Berlusconi and his far-right allies would emerge as the largest bloc in parliament but would fall short of a majority.

The biggest arty looks to be like the anti-establishment 5-Star Movement looks set to be the biggest single part, attracting votes where people feel discontent over entrenched corruption and growing poverty. The ruling centre-left Democratic Party (PD) was looking like as third place slot. Polls set to close at 2200 GMT today.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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