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Snap election looks less likely in Italy; Focus on BOE decision to be on negative rate outlook


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ECB Economic Bulletin noted that the pandemic continued to pose serious risks to public health and to the euro area and global economies. Start of vaccination campaigns across the euro area was an important milestone in the resolution of the ongoing health crisis. Monetary stimulus remained essential to preserve favorable financing conditions over the pandemic period for all sectors of the economy
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German Fin Min Scholz stated that had to make a decision in coming days whether debt brake suspension would also occur in 2022
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Italy Viva Party leader Renzi stated that Draghi was the best person for the Prime Minister position ....

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Italy boosted by Super Mario appointment, Alphabet leaps


Europe
The previous government collapsed after the Viva Party withdrew support for it, so uncertainty has been hanging over the country recently. Strong political leadership is needed to guide the nation through the health crisis. Traders snapped up Italian equities on the announcement that Mr Draghi will try and cobble together a new administration. His success at the helm of the ECB earned him the nickname ‘Super Mario’ but achieving similar results from strained Italian politics should prove to be much trickier. The League party and the Five Star Movement haven’t decided if they will support Mr Draghi or not. Matteo Salvini, of The League party feels that an election would be the best course of action. ....

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