Markets hail Mario Draghi’s political return to Italy

The return of Mario Draghi, who has agreed to form a new government, has been very well received by investors. They see the appointment of the savior of the euro as a guarantee of stability. The Milan Stock Exchange ended higher and Italian rates eased.

Mario Draghi welcomed by Italian President Sergio Mattarella this Wednesday at noon in Rome.

Will the savior of the euro get Italy out of the political crisis? The markets seem to believe it. Even before Mario Draghi agreed to form a new government, the Milan Stock Exchange was already welcoming, in the morning, the probable arrival of the former president of the European Central Bank at the helm of the Peninsula. Investors hope the former banker can bring political stability after the collapse of the ruling coalition, and use € 200 billion in EU funds to help the Italian economy recover from the crisis sanitary.

The one who said he was “ready for anything” to save the euro zone in 2012 should succeed Giuseppe Conte, unable to unite his coalition. Last month the government exploded in the air, tearing itself apart over how to spend EU funds. In one of his rare statements since leaving the ECB at the end of 2019, Mario Draghi warned of the dangers that could lie in wait for the Peninsula now that it had funds from the European Union to reorganize its economy. For a country struggling with record loans, if the ” debt is used for unproductive purposes, it will be considered ‘bad’ debt and its sustainability will be eroded He warned.