Italy on the edge of crisis: Should Europe be scared?

Share prices across Europe have slumped over the latest political turmoil in Italy – with more elections expected within months. Attempts by the populist Five Star and League parties to form a governing coalition collapsed after the Italian president rejected the choice of a leading euro-sceptic as economy minister.

The technocrat Carlo Cottarelli has been charged with forming an interim government – but its future already looks doomed before it’s even been created.