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Italy’s Greek Tragedy

LONDON – The euro crisis is not yet over. After months of relative calm in the eurozone, financial markets are again gripped by uncertainty, owing to political instability in Italy and the banking crisis in Cyprus. Are the eurozone’s struggles finally becoming too much to bear?

Last month’s election plunged Italy into political deadlock. While the center-left coalition, led by Pier Luigi Bersani, won a comfortable majority in the lower house – thanks to the bonus that Italian electoral law grants to the largest coalition – it gained too few seats in the senate to govern effectively.