Italy close to new cabinet

City A.M. Reporter
NEW Italian Prime Minister Mario Monti announced last night that he was preparing to reveal his new cabinet to the President this morning.

Markets rose on the news, as his government may bring the prospect of a stable Italy closer, and so lessen the severity of the Eurozone crisis.

European stocks closed down, but when Monti announced his plans US markets rose, though swiftly pared back. The Dow ended the day up 0.14 per cent.

The unelected Monti was appointed on Sunday and is expected to lead a small government of technocratic “experts” who intend to force through the fiscal reforms Italy needs to avoid defaulting on its large debts.

After revealing his cabinet he will need approval from parliament before getting to work.

Monti, whose government will try to reverse a disastrous collapse of market confidence in Italy, said the first day of talks had been “constructive,” and that politicians understood the seriousness of Italy’s situation.

But he also said his government should last until the next scheduled elections in 2013, in contrast with widespread predictions that he will have to make way for early elections once he passes the reforms promised to Europe.