Eurozone leaders now have two crisis points to deal with as Italy, the sixth largest economy in the world, struggles to appoint a political leader that can replace Prime Minister Silvio Burlusconi, who has promised to step down once the austerity package has been ratified.

Markets have already pushed lending rates to Italy above levels that were critical for Greece and Ireland, 7% being the accepted danger level, so urgent clarification as to who will be at the Italian helm to steer Italy out of these troubled waters is needed. It is believed that the European Central Bank is buying Italian debt in open markets to try and keep Italian bond rates from escalating.

Senior global equity markets have fallen around 2% yesterday, with European markets looking to open substantially lower today,with financial stocks taking the brunt of the losses, still reeling from the haircuts they have had to bear on Greek bond purchases.

In Greece a coalition has been formed by the two main parties, that allows the current Prime MinisterGeorge Papandreou to step down and the way should now be clear for Greece to accept the EU austerity packag,e that will trigger the bailout funds so badly needed to stave off insolvency.