The shared currency of the European Union dropped to its lowest value since early October on Wednesday, the same day that a new prime minister was sworn into the debt-hobbled nation hosting the euro zone's third-largest economy, Reuters reports.
Former vice president of the European Central Bank and a European Commissioner, Mario Monti, 68, ascended to his political peak on Wednesday – but is unlikely to enjoy a very long honeymoon period. His cabinet is full of apolitical types, demonstrating how serious is the debt scourge situation in the nation whose economy trails only those of Germany and France in the euro zone.
Monti is equipped with "all the necessary qualities not to mention his credibility and reputation in Europe and the world, but it's not sufficient," political science researcher Phil Giurlando with Queen’s University in Ontario, Canada, told Bloomberg. "He will have to convince all these groups that are protecting their electoral fortunes that these sacrifices have to be made."
A banker will serve as the top official of Italy's development, infrastructure and transport ministry, the BBC reports.
Yields on Italian government bonds are dangerously near the same 7 percent level that spurred Ireland, Greece and Portugal to pursue bailouts, according to Bloomberg.