Mario Monti

Monti, right, and Hollande, centre, with Belgium's Elio Di Rupo during Day 1 of the summit

For all the pre-summit posturing over the eurozone’s increasingly controversial austerity-led crisis response, participants said the EU summit’s first-day session on Europe’s economy was a staid affair with almost no real debate over whether EU policy was on the wrong track.

Indeed, the summit’s communiqué, issued after the summit broke at about 10:30pm, was almost identical to early drafts circulated late last week, even though some predicted a tense discussion over its advocacy for more targeted government spending.

Instead, a different theme appeared to emerge from several leaders in the wake of the thumping taken by Mario Monti, the outgoing Italian prime minister who implemented many of the Brussels-recommended reforms, in last month’s elections: EU policies are still correct, they’re just taking longer than expected to produce results.

“The period Mario Monti was prime minister was a very brief one,” said Angela Merkel, the German chancellor, when asked of the lessons of the Italian vote. “Adopting reforms and the reforms taking effect, there’s a period of time for the benefits to be reaped.” Read more

Monti casts his vote in this week's Italian parliamentary elections.

Just 48 hours after receiving a drubbing at the polls, outgoing Italian prime minister Mario Monti came to Brussels and delivered his first major address since the election, in which he issued a dire warning to other leaders attempting to reform their countries in the midst of a deepening recession: what just happened to me can happen to you.

Monti’s remarks, which appeared off the cuff, came at the end of a detailed review of Italian and EU competition policy as part of a conference Thursday hosted by Joaquin Almunia, one of Monti’s successors as EU competition commissioner.

Monti warned that because economies take a long time to grow after implementing tough austerity and economic reform measures, public opinion quickly turns against the policies and the result is “the coming up of political forces that, of course, oppose the right policies” – a not-so-veiled reference to the Five Star Movement of Italian populist Beppe Grillo, which well outpolled Monti’s coalition in this week’s vote. Read more

Berlusconi, right, hands over ceremonial bell to Monti, marking the transfer of power last year.

With Silvio Berlusconi’s vow to run again for prime minster in February’s snap elections on an avowedly anti-German and anti-austerity platform, Italian attitudes towards Berlin and the EU’s handling of the eurozone crisis are suddenly back on the front burner.

Fortuitously, we just completed one of our regular FT/Harris polls, which surveyed 1,000 adults in the EU’s five biggest countries – including Italy– in November. And it’s no wonder Berlusconi believes his new attacks will be receptive at home: Italian attitudes against Germany and austerity are hardening.

We’ve posted the 16-page report with the complete results here for anyone who wants to wade through them, but it’s worth highlighting the Italian findings. Fully 83 per cent of those polled believe Germany’s influence in the EU is “too strong” – the same total as Spaniards, but a stunning jump since October 2011 when only 53 per cent of Italians felt that way. Read more

Monti, left, and Katainen at last week's meeting between the two prime ministers in Helsinki

It is axiomatic that politics make strange bedfellows, but it would be hard to find stranger bedfellows than Finland, the orneriest of the eurozone’s austere north, and Italy, the biggest debtor in its troubled south.

Even before the eurozone debt crisis put the two countries on a collision course, Helsinki and Rome had their run-ins, particularly after Parma beat out a Finnish competitor to host the European Food Safety Authority – and then-prime minister Silvio Berlusconi poured salt in the wound by suggesting EU officials would prefer Parma’s famous ham to Finnish smoked reindeer.

But are there suddenly signs of a thaw – or even an alliance? First, Berlusconi’s successor, Mario Monti, last week decided to visit Helsinki for meetings with Jyrki Katainen, Finland’s prime minister. Now, top officials from Berlusconi’s centre-right party appear to be adopting a Finnish plan to help lower Italian borrowing costs. Read more

Italy's Mario Monti, right, with Chinese premier Wen Jiaobao during a Beijing trip at the weekend.

Most of the focus on Friday’s meeting of eurozone finance ministers in Copenhagen was on how much leaders would increase the size of their €500bn rescue system. But according to a leaked document we got our hands on, the eurozone firewall wasn’t the only topic being debated.

The four-page report says the “Budgetary situation in Italy” was item #3 on the eurogroup’s agenda. As we wrote for Tuesday’s print edition, the report warns that any slippage in growth or a rise in borrowing rates could force the technocratic government of Mario Monti to start cutting again – something he has vowed not to do.

As is our practice, Brussels Blog thought it was worthwhile giving some more details and excerpts from the report beyond what fits in the newspaper. Read more

A tram passes the euro sign sculpture in front of the European Central Bank ( ECB) in Frankfurt, Germany. Photographer: Hannelore Foerster/Bloomberg

Welcome to our continuing coverage of the eurozone crisis. All times are London time. By Tom Burgis and John Aglionby on the news desk in London, with contributions from FT correspondents around the world. This post should update automatically ever few minutes, but it may take longer on mobile devices.

The turmoil in the eurozone has taken a troubling turn in recent days, with anxiety spreading from Europe’s periphery to its “core” countries. Even as Italy’s Mario Monti readies his economic agenda to be presented today, investors are looking at France, the Netherlands and Austria with increasing unease and wondering whether the ECB might yet ride to the rescue. Over in Greece, today is the anniversiary of 1973′s mass student protests – with demonstrators once more planning to take to the streets. And the bond markets are showing ever more strain, with today’s Spanish bond auction likely to test sentiment still further. We’ll bring you all the latest as it happens.

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Mario Monti arrives to unveil his new government at the Quirinale Palace in Rome. Photo: Alberto Pizzoli/AFP/Getty Images 

Mario Monti arrives to unveil his new government at the Quirinale Palace in Rome. Photo: Alberto Pizzoli/AFP/Getty Images

 

Welcome back to the FT’s rolling coverage of the eurozone crisis. By Esther Bintliff and John Aglionby on the world news desk, with contributions from correspondents around the world. All times are GMT.

This post will update automatically every few minutes but could take longer on mobile devices.

Europe’s two new technocratic prime ministers should consolidate their respective grips on power today. Lucas Papademos, in Greece, is expected to win a confidence vote in parliament, while Mario Monti, his Italian counterpart, announces his new cabinet. Eyes will not be far from the markets either, following yesterday’s bruising ride.

 

12.52: Here’s the full list of the new Italian cabinet, courtesy of our reporter Giulia Segreti who is at the Quirinale palace in Rome:

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Mario Monti, Italian prime minister designate – Image Getty

Welcome back to the FT’s live coverage of the eurozone crisis and the global fallout. By John Aglionby and Esther Bintliff in London with contributions from correspondents around the world. All times are GMT.

This post should update every few minutes but might take longer on mobile devices.

Are calm waters finally visible on the horizon of the eurozone? Perhaps – for now. Mario Monti’s first full day as Italian prime minister designate will be marked by a bond auction and his efforts to form a government. A confidence debate starts in Greece on Lucas Papademos’s government. And German chancellor Angela Merkel holds her Christian Democratic Union party annual conference in Leipzig.

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Since the start of this year, Europe’s financial crisis has been given many labels - a sovereign debt crisis, a banking sector crisis, a crisis of the euro itself.  But rarely is it asked whether the European Union’s single market, which is the foundation stone of EU integration in the modern era, is under serious threat.

One person who has asked this question is Mario Monti, the distinguished former EU commissioner for the internal market and competition policy.  In May he presented a report on how to reinvigorate the single market to Commission president José Manuel Barroso, who had commissioned it from him last year.  It delivered a blunt message.  Many Europeans – citizens as well as political leaders – looked at the single market with “suspicion, fear and sometimes open hostility”, Monti said.  “The single market today is less popular than ever, while Europe needs it more than ever.” Read more