By Maximilian Clarke
Mario Monti has this afternoon (Wednesday, 4pm GMT) been sworn in as Italy’s new Prime Minister at the Presidential Palace in Rome.
Dubbed ‘Super Mario’ for what is hoped will be his decisive, economically driven policies on tackling Italy’s spiralling debt as the country remains precipitously close to collapse, Monti marks a step-change from the flamboyant Berlusconi.
An economist by profession, Monti will form a cabinet of economists rather than career politicians in order to restore confidence in the eurozone’s third biggest economy. The absence of politicians will, Monti has said, boost the country’s ability to deal with the crisis by eliminating much political debate.
European markets had anticipated the move and as a result, reaction has been muted as they await Monti's first actions.
Swift action is needed to restore market confidence and if Monti deliberates, failing to enact a decisive austerity package, more longer term damage to market confidence will likely result, Jeremy Cook, chief economist at World First forex brokers' explains.
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