NicholasSpiro, managing director of Spiro Sovereign Strategy, told CNN that a year ago Italy's economy was "falling off a cliff" and the investment community is showing "complacency" over the prospect of a Berlusconi return.
"The longer the political vacuum persists, the more vulnerable Italy's bond market becomes at a time when sentiment towards the euro zone has already taken a knock" from Cyprus, said NicholasSpiro, head of Spiro Sovereign Strategy in London.