Italy set for change

Two days after Greece inaugurated a new government to cope with its debt which was threatening the stability of the euro Italy's borrowing costs went through the roof.

Italy is a far bigger economy and more active than Greece – the third largest in Europe - and proportionally more concern is felt over the possibility that what should be an asset could be threatening to destroy the eurozone and less directly world financial markets.

Silvio Berlusconi, at least realising different leadership is needed to confront these problems has resigned so Mario Monti , 68-year-old economics professor, can lead Italy out of the mire.

He did not set a timetable for the formation of a new government, and would not say who he planned to nominate as ministers but speaking to reporters, Mr Monti said: "Italy must again be and must increasingly be an element of strength, not weakness, in a European Union that we helped found and in which we should be protagonists."

Mr Monti said he wanted to build "a future of dignity and hope" for Italy's children and that "We will aim at solving the financial situation and resume the path of growth, while remaining attentive to social equity". 

However the thngs Mr Monti will have to do to save Italy, will not be popular. They are difficult and dirty. Many of them will not appear to be working for a long time and the Italian people will not like the pain that is involved and may, in time, look to retire Mr Monti earlier than is advisable.

The world is waiting Mr Monti – God Speed..

CM