Sunday’s election in Italy appears to have given no party a clear majority ? signaling a period of political instability for one of Europe’s biggest economies.
As of Monday morning local time, the official vote count indicated that a center-right bloc will gain the most seats in parliament ? though that group does not include the day’s top vote-getter, the anti-establishment Five Star Movement.
Those results are in line with market expectations. Italy will now try to calm markets, while its many political parties work to form a new government and appoint a prime minister.
Weeks of negotiations on the way
Weeks of talks between the parties may now lie ahead. In the event of a hung parliament, the Italian constitution specifies no time limit for parties to reach an agreement or call a fresh election.
“The formal process to form a government will be directed by President of the Republic Sergio Mattarella. The president is under no obligation to hand a mandate to the biggest party, and may first seek to establish whether parties can get together a coalition with enough seats to govern,” Wolfango Piccoli, co-president of Teneo Intelligence, said in a note last Tuesday. Continue reading at CNBC.com.