Italy Heads to New Vote With Europe as Campaign Faultline

  • Elections possible as early as the fall after populists fail
  • Cottarelli, 63, is a former executive director of IMF
Italian politics has less of an impact on the euro than interest-rate differentials, says Julius Baer’s David Kohl.Source: Bloomberg
Lock
This article is for subscribers only.

Italian President Sergio Mattarella asked economist Carlo Cottarelli to form a government with new elections due as early as the fall, as populist leaders railed against the president and the European Union for blocking their bid for power.

Cottarelli, 63, a former executive director of the International Monetary Fund, pledged Italy would stay in the euro and called for “a constructive dialogue” with the EU, in comments to reporters Monday. “The president has asked me to go before parliament with a program that will bring the country to new elections,” he said.