European markets closed lower Tuesday night amid concerns that Italy was the next EU country that’s headed for the exit. First Brexit now Quitaly. Italian shares fell 3% following a sell-off in the bond market, bond yields rose 17.88%. This was all on concerns about the fraught political situation. The fear is the threat of default due to this political instability. Italy is facing a few problems. The Italian government debt stands at €2.3 trillion (132% of GDP) and is the second highest debt level in the EU after Greece. It’s also facing political turmoil and the public have had enough. This has brought about the rise of two populist parties. The left wing 5 Star Movement (yellow) and the far-right League (Green). The League and the 5 Star leaders have agreed to form a coalition. The leaders of the two parties trying to form a government have accused the current Italian President Sergio Mattarella of betraying the constitution. After a break down in Government over the weekend, interim Prime Minister Carlo Cottarelli was named until the fresh elections can take place. This means the potential for another Italian election within a few months. Here’s what has markets rattled. That July 29 election, is shaping up to be a battle over Italy’s future in Europe. A win here for…

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