Monti attempts to restore confidence

FORMER EU competition commissioner Mario Monti is rushing to form a new government in a bid to restore confidence in Italy’s finances as markets offered little relief to the premier-in-waiting.

Italian bonds and stocks erased early gains and declined as Monti met with leaders of the country’s political parties to discuss cabinet nominees.

“Uncertainty remains over Monti’s team, the programme and the majority, especially in terms of the conditions that will be requested to assure a stable majority in parliament,” said Gianluca Ziglio, an interest-rate strategist at UBS AG. “The market now expects stability and the restoring of public finances to begin with.”