Italian Senate Approves 2013 Financial Budget

Before the current Prime Minister of Italy, Mario Monti steps down; the Italian Senate has approved the 2013 budget. Members of the upper house voted for the budget (199 supported the same, whereas, 55 opposed), however 10 were absent during the voting process. For final approval of the same, the bill will now be sent to the Chamber of Deputies and that vote will be held tomorrow. The report was published by the Ansa newspaper.

Incidentally, on 8th December, Monti announced his decision of resigning from the Prime Minister’s position. He cleared that he will step down after the budget is passed. Incidentally, former Premier Silvio Berlusconi’s party decided not to support the Government anymore and hence, Monti was under immense pressure. However, Monti is still asked to participate in the election campaign from not only Italian politicians, but, Euro region leaders and business heads as well. Incidentally, many economists acknowledge Monti’s role in helping the 3rd biggest economy of the Euro area to revive somehow. Monti is probably going to clear his political future through a press conference on 21st December. Monti, currently 69, used to work as a commissioner for the European Union. Many predict that Monti will run in the upcoming election and if his list of candidates win majority of the seats, he will again emerge as the Premier of the country.

According to Nicholas Spiro, who works as the Managing Director of Spiro Sovereign Strategy, the investors are not able to come up with a decision because of the politically volatile and uncertain climate in Italy. Nicholas added that he is not sure whether investors have properly priced in the risks, because of the upcoming elections in Italy.

Despite some improvements, Italy still has a debt over 2 trillion Euros and in the 5th quarter, its economy has contracted. Italy is still running a surplus after the interest payments. It is expected that Italy will turn out to be the only country in the European Union to bring the deficit within the limits by end of 2012.

Though many political and business leaders of Europe favor Monti; a recently held exit poll showed that Monti will not get more than 15% of the total votes. Some predict that if Monti decides not to run and Democratic Party emerges as the winner, Monti may become the next Italian President.