Italy presidential race delivers least bad option

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Italy presidential race delivers least bad option
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Breakingviews - Italy presidential race delivers least bad option

Italian President Sergio Mattarella speaks during the ceremony of the Italian German collaboration awards at the Italian Embassy in Berlin, Germany, October 12, 2021. Italian Presidency/Handout via REUTERSMILAN, Jan 31 - Italy’s chaotic presidential race has ended at the starting line. After a week of high political drama, lawmakers and regional representatives on Saturday pickedincumbent Italian President Sergio Mattarella, 80, for a second seven-year term.

, the yield difference between Italian and German 10-year government bonds widened last week to nearly 150 basis points against around 100 basis points for most of 2021.Yet the Goldman Sachs alum failed to win the necessary political backing, even from within the ruling coalition. Meanwhile, parties were woefully unable to agree a decent successor to Mattarella, who had openly ruled out staying on.

Give his age, Mattarella may not serve his new term in full. This may allow Draghi to try again to become president, most likely after the next electoral round.

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