By Francesco Pesole, Antoine Bouvet, Peter Vanden Houte
The collapse of Italy's ruling coalition opens the way for three possible scenarios: new elections, an extension of the current coalition, or a new technocratic government. Timing will be crucial, given the proximity to the budget season. Rising political uncertainty is likely to prompt a widening in the 10Y BTP-Bund spread and to weigh on the euro.
Italian Deputy Prime Minister Matteo Salvini presented a vote of no-confidence in his coalition partners
Three scenarios ahead of the government crisis
Italy is facing another political crisis