Having regained power in Italy, Silvio Berlusconi is vowing to forge an alliance with French President Nicolas Sarkozy to assert their might over the European Central Bank, interest rates and the currency. Sarkozy has been critical of the central bank's monetary policies, blaming them for the soaring euro, but until now he has had no allies. "(T)he re-election of Berlusconi represents a big shift in the political balance of power," said Bernard Connolly of Banque AIG. "Spain will probably join France and Italy before too long, so you will have three of the big four euro zone countries in the same camp."

Related Summaries