Prodi's Daunting Task

It was a tight race, but final unofficial results confirm that Romano Prodi is likely to replace Silvio Berlusconi as Italy's Prime Minister. But the victory celebrations may be tempered by some daunting facts. Prodi has to govern with a small majority, and must hold together a coalition of more than 10 parties, which will complicate prospects for structural reform. This could hamper Italian growth prospects, and have a negative impact on the credit rating agencies' outlook for the eurozone's third largest economy.

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