Instability ‘may freeze’ Italy’s reforms

Italy, beset by yet another government crisis, cannot afford political instability at a time when it needs to make its economy more competitive, the chairman of eurozone finance ministers said yesterday.

Dutch finance minister Jeroen Dijsselbloem told a Reuters eurozone summit that political turmoil could hamper the single currency area’s recovery by paralysing decision-making and freezing structural economic reform in Rome.

Italian prime minister Enrico Letta yesterday said he would resign today, with Democratic Party leader Matteo Renzi expected to be appointed head of government within days.