Italian PM Letta to Resign After Power Struggle

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Feb. 13 (Bloomberg) –- Bloomberg’s Hans Nichols reports on the resignation of Italian Prime Minister Enrico Letta. He speaks with Olivia Sterns on Bloomberg Television's "Lunch Money." (Source: Bloomberg)

We have some breaking news here at bloomberg.

I just wanted to let you know that enrico letta, the premature of italy, has resigned.

This comes after matteo renzi, the president of the august party, the people's him credit party, has been urging letta to resign.

There has been a power struggle ever since renzi got the job back in december.

Letta has been in power for 10 months.

At renzi's earning -- urging, he will resign.

Italy will not hold elections for new prime minister because matteo renzi will take over the position as premier pulls up this has been a tumultuous time for italian politics after silvio berlusconi left and there has been a positive people did not know which party would take over, but finally, enrico letta filled up power vacuum.

Now he is resigning at the urging of matteo renzi.

He is the head of the people's democratic party.

Renzi and letta did not get along.

We have seen italian bonds at most -- at multiyear lows falling amid this power struggle for control.

So again, italian prime minister enrico letta has said he will resign.

He has sent the statement to president napolitano.

For more, let's head over to hans nichols, who is in italy.

Hans?

It is dark and we thought it would have the same radiant experience as earlier.

It is obviously an exciting day here in italian politics.

I will just walk you through the last 2, 3 hours.

What we saw is matteo spoke to his party, and he thanked letta for his experience was about a clear indication that letta would be on the way out.

But we had not heard from letta yet.

Now we have, he said he will resign.

That means they will have to gather all the party that are in this governing vision, ask them if renizi would be accessible to be the new prime minister.

If that is the case, you can essentially's switch the head of the government, switch the premier without actually having to call new elections.

If that is not the case, if you have to call new elections, then we're into a further layer of turmoil.

And that we still do not know about, and we are still hopeful that we may hear from renzi later tonight.

He was opposed to speak after this meeting of his party.

We did not hear from him, so now the question is -- will we hear from him, and what would he be saying?

Will he have legitimacy with the people?

What have enrico letta been saying in the weeks up to this because the power struggle is not new?

It has been going on since december, since renzi took control of the party.

What he has been saying -- yesterday, his comments were very much about renzi needs to be careful, right, and he used this phrase.

Excuse me, my phone is ringing here.

What we have from renzi is kind of a series of moves to oust letta.

What we have from letta is let's take this road, let's walk very carefully, and letta eventually -- you did not have his party behind him, he saw the writing on the wall, and he needed to resign, and so he tendered his resignation.

Hans, it was such a tumultuous period for italian politics in the lead of four enrico letta to take over.

Do think this will usher in a new era of political instability in italy?

That is a safe bet.

The question is, markets have been pretty calm brought the day.

The question is -- is very split between investors and voters?

Investors might be relatively calm and almost thankful or pleased, there might be a slight change at the head of the government.

The question is, will voters have the same view, and if voters feel as this this were almost -- as if this were almost a coup d'etat, what we will see as the government will then try to govern without any popular support.

This will be the third prime minister who is not a democratically elected.

Unclear how sustainable that is in the long-term.

All right, hans, thank you so much.

Hans nichols, our international correspondent.

There is a story now that -- drops to a record low, so it

This text has been automatically generated. It may not be 100% accurate.

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