Giuseppe Conte

Italy's problems 'might be short-lived'

BBC Radio 5 Live

Italian Prime Minister Giuseppe Conte
Getty Images

On Wednesday, Italy's Prime Minister Giuseppe Conte (pictured) resigned - but not before launching a blistering attack on coalition partner Matteo Salvini.

Will political turmoil create wider problems for Europe's third largest economy?

Rebecca McVittie, investment director at Fidelity International, says that Italy's problems "have been there for some time".

She says: "It is one of the most indebted countries in the world so when you think about the problems that Italy faces, ongoing political instability has created significant issues.

"Certainly, if we look at how markets responded, I wouldn't describe the response as disastrous. There were areas of the market like Italian banks that fell yesterday before staging a partial recovery and actually it seem like the bond market is not so concerned.

"It may be perceived that these problems might be short-lived," she says.

Italy PM Conte attacks League's Salvini in resignation speech
Giuseppe Conte said Matteo Salvini was creating a new political crisis in Italy for "personal and party interests".