money & economicsWikipedia2011 · Rome, Italy
Italy's Berlusconi resigned as bond markets lost faith in the euro area's third economy
On 12 November 2011 Silvio Berlusconi said he would resign as Italy's prime minister, effective 16 November, largely because of the euro area crisis. Italy, with one of the biggest government debts in the eurozone, faced rising borrowing costs as investors doubted it could manage. Berlusconi, a media tycoon who owned Mediaset and AC Milan, had been prime minister in three governments between 1994 and 2011. His departure cleared the way for a technocratic government led by Mario Monti, which pushed through budget cuts and economic reforms.
Italy's size meant a default or a euro exit would be too big for Europe to rescue easily, so its leadership change was watched across the world. It showed how bond markets can quickly press a government to change course in a currency union.
Greece, Ireland, Portugal and Spain also saw governments fall or change policy under market and creditor pressure during the same crisis.
Berlusconi was nicknamed 'Il Cavaliere', 'The Knight', for his Order of Merit for Labour.
Adapted from Wikipedia, the free encyclopedia · CC BY-SA 4.0
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