Italy's 'fate' not dictated by financial markets: EU's Juncker

The financial markets will not dictate how Italians vote and Italy will pursue its pro-EU path, European Commission chief Jean-Claude Juncker said today

Juncker denied controversial remarks attributed to his budget commissioner Guenther Oettinger, who reportedly suggested the financial markets will tell Italians how to vote in a political crisis.

"Italy's fate does not lie in the hands of the financial markets," Juncker said. Italy faces political chaos after two populist parties failed to form a government.

"Regardless of which political party may be in power, Italy is a founding member of the European Union that has contributed immensely to European integration," Juncker said in a statement.

 

Juncker said "he is convinced that Italy will continue on its European path." He added that the European Commission, the 28-nation EU's executive arm, "is ready to work with Italy with responsibility and mutual respect." Italy's caretaker prime minister was working to assemble a cabinet on Tuesday to save the country from political turmoil in the face of resistance from far-right and anti-establishment parties.

Financial markets plunged into a frenzy as Carlo Cottarelli was left in charge after efforts to end months of political deadlock hit their latest setback. President Sergio Mattarella on Monday blocked a cabinet proposed by the anti-immigrant League and their allies in the Five Star Movement (M5S).

Five Star and the League, who hold a majority in both houses of parliament, have vowed to reject Cottarelli's proposed technocrat government.

New elections could be held as early as September -- seen as the most likely outcome of the political saga sparked by an inconclusive poll in March.