Italian Prime Minister Enrico Letta urged his allies to embrace the deal that brought them to government with rivals and take inspiration from the strength of Silvio Berlusconi, their adversary-turned-partner.
Italian borrowing costs declined at an auction of 11 billion euros ($14.4 billion) of Treasury bills as the Bank of Japan’s unprecedented stimulus pushes investors to search for higher returns in Europe.
Italian Prime Minister Mario Monti may reverse a pledge not to run for a second term and become a candidate in elections that may be held as soon as February, said Riccardo Barbieri, chief European economist at Mizuho International Plc in London.
Pier Luigi Bersani, the Italian prime minister hopeful facing a shortfall in parliamentary support, was encouraged by business and labor lobbies to seek a deal with political adversaries, including Silvio Berlusconi.
President Giorgio Napolitano was preparing for a second day of talks with leaders of Italy’s fractious parliament as he seeks to broker a compromise on forming a government in Europe’s fourth-largest economy.