Italy's new Prime Minister Enrico Letta won French backing on Wednesday for calls to spur economic growth alongside budget rigor.» Read More
BERLIN, June 28- A year ago, Angela Merkel emerged bruised and battered from a European Union summit after the leaders of France, Italy and Spain ganged up on her, forcing German policy concessions on aid to struggling banks. With an eye on a looming election in September, the German chancellor returned to Brussels this week and reasserted her authority in Europe.
By linking the choice of president of the executive European Commission to the European Parliament elections in the 2009 Lisbon Treaty, EU leaders hoped to reverse rising abstentionism and overcome Europe's widely bemoaned "democratic deficit".
Napolitano rescued Italy in 2011 by replacing Berlusconi with technocrat Mario Monti. Italy's fate once again depends on the man affectionately known as "King George."
President Giorgio Napolitano has given Enrico Letta, deputy head of the center-left Democratic Party (PD), a mandate to try to form a new government, according to news wires on Wednesday.
The re-election of Italy's president has raised the prospect of an end to the stalemate that followed the general election, with a move to form a government foreseen within days.
Italy's caretaker government announced on Wednesday it was delaying approval of a decree to pay back some 40 billion euros of state debts to private firms.
A new Italian government is still a long way off and the country may be headed for fresh elections, a senior official of Silvio Berlusconi's center-right party said.
Italian parties reacted skeptically on Friday to center-left leader Pier Luigi Bersani's call for a government backed by all political forces, complicating efforts to end the stalemate left by last month's election.
A dramatic anti-austerity vote leaves Italy lying outside the fortress the European Central Bank constructed around the euro zone last September.
Alberto Mingardi, director general at the Bruno Leoni Institute, tells CNBC that Italians voted against un-credible policy proposals and went for the entertainment.
After an election that left no party with a clear majority, Steve Sedgwick asks what is next for Italy.
Hopes of a victory for a pro-reform Italian government helped fuel a stock market rally and support government bonds on Monday in the final stages of voting in the general election.
Marco Cristofori, head of equity department at Centrobanca talks to CNBC about his two investment scenarios for the outcome of the Italian election.
Michele Raucci, chairman of Sixiang Holding, tells CNBC that confidence in Italy among investors dramatically reduced once the Monti government ended.
Fears are mounting that an inconclusive election in Italy this weekend could rattle markets, setting back the countries reform efforts. Julia Chatterley has more from Milan.
Silvio Berlusconi's resurgence and the rise of a foul-mouthed populist comedian have thrown Italy's weekend election wide open, with deep uncertainty over whether the poll can produce a positive outcome.
Financial markets remain keenly focused on Italy's ability to control its public finances and pursue reforms to lift its stagnant economy, Ignazio Visco said on Saturday.
Italy's former Prime Minister Silvio Berlusconi announced his "last great electoral and political battle" on Sunday.
Barack Obama knows a thing or two about winning elections and having pressed Italy's Mario Monti into running for prime minister in next month's elections, the US president is also lending some advice.
Ignazio Visco, governor of the Bank of Italy, tells CNBC that Italian bank Monte dei Paschi di Siena is stable and that the losses were not due to the government hiding information.