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Stefan Wundrak

Impact of the Italian election

The Italian election certainly has contributed to heightening the focus on political risks.

The Italian election certainly has contributed to heightening the focus on political risks. Although, the situation is unlike last year’s; the good news is that the ECB has finally built a firewall that takes more than an inconclusive election to break. The Milan stock market fell by 11% and bond markets spreads have increased across Southern Europe, but so far, there has been no European panic reaction on capital markets. The return of uncertainty will be damaging to the Italian and European economy as it discourages business leaders from taking investment decisions and keeps consumers from spending. Most international property investors have put acquisitions in Italy on hold again. However, the large number of protest votes for the 5-Star movement shows the Italian electorates desperation for change. I think “The Market” shares this sense of urgency with Italians.

Stefan Wundrak

Stefan Wundrak

Head of European Research

Stefan's biography