"The challenges a Renzi government will face are enormous," says Javier Noriega, chief economist with investment bankers Hildebrandt and Ferrar in Milan. "He has said he wants to create jobs and economic growth, but so far we have little indication how he will do that."
The initial indications are not encouraging.
Markets were still open on Thursday in Italy as it became clear Prime Minister Enrico Letta would be forced out. The news sent the blue chip index at the Italian Stock Exchange in Milan down more than 1%, while the yield on Italian bonds inched higher on secondary markets — reflecting the view that investors saw Italy as riskier than before.
Italians, however, remained hopeful that the fiery Tuscan would be able to push through reforms that would breathe life into the moribund Italian economy.
"Letta had his chance and he could not push through the reforms and Renzi is a very capable," said Fiorello Ricci, 28, an unemployed electrician. "Somebody has to get this economy moving."
Sandra Olanda, a 39-year-old secretary, agreed: "If he can't do it who can?" she asked. "We don't have many options."
Letta is expected to hold a final cabinet meeting Friday, before delivering his resignation to Italian President Giorgio Napolitano, who is then expected to ask Renzi to form a new government.
Renzi will head the third Italian government since last April, when technocrat Mario Monti stepped down to make way for Letta. At 39, Renzi will also be the youngest prime minister since the establishment of the Italian Republic at the end of World War II.
Resource:http://www.usatoday.com
