Monti’s Labor Law Marks Return of Political Risk: Euro Credit
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Investors are facing the return of political risk in Italy as Prime Minister Mario Monti’s plan to make it easier to fire workers divides his ruling coalition.
Unless Italy is “ready for what we think is a good job, we may not seek to continue,” Monti said on March 26, prompting concern the government won’t last until elections due by May 2013. He made the comments after leaders of the Democratic Party, which has backed his unelected government, said they would seek to reverse the change in Parliament.