Italy and Greece see their paths diverge

Analysis article suggests that the new technocratic Prime Ministers in Italy and Greece, Mario Monti and Lucas Papademos confront dissimilar domestic political climates.

Mr Monti fresh from victories overhauling Italy’s pension schemes and raising property taxes, is riding a wave of public approval at home while abroad he is being welcomed.

Mr Papademos, on the other hand, has found himself on the precipice of a sovereign default, stuck in between his eurozone bail-out lenders and private holders of Greek debt, who are in a fierce fight over how big bondholder losses should be to get Athens on the path of financial sustainability.

ESO: Background information: Greek bond talks edge closer to deal http://www.europeansources.info/record/greek-bond-talks-edge-closer-to-deal/

ESO: Background information: Italy’s reforms win Merkel seal of approval http://www.europeansources.info/record/italys-reforms-win-merkel-seal-of-approval/

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