Four Possible Outcomes in Italy’s Election This Weekend

  • Center-right, grand coalition, populist pact are all possible
  • Prospect of gridlock may unsettle markets after March 4 vote

Three likely outcomes of the Italian elections

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Italy is long used to managing political instability, but giving birth to the country’s 65th government since World War II looks a particularly tough order. With Sunday’s election forecast to produce a hung parliament, weeks of political uncertainty could hang over an economy burdened with a feebleBloomberg Terminal recovery and a public debt mountain. Here are four possible scenarios for what might transpire:

No single party or coalition wins a parliamentary majority. Italy would still have a government, because Paolo Gentiloni remains premier. Back-room dealings start before parliament reconvenes on March 23. Lawmakers pick new speakers for the lower house and the Senate -- offering the first clue to new alliances.