Italy Uncertainty Stresses Investors

The muddled elections in Italy continue to strain markets worldwide. Six months of relative calm have ensued since the European Central Bank’s Mario Draghi vowed to do “whatever it takes” to prevent a euro crisis. But anti-austerity voters in Italy have cast doubt anew on whether Italy will continue with its program of budget cuts and tax increases. The silver lining in this dark cloud of chaos may be that policymakers will shift their focus to growth rather than austerity.