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Europe Central Bank Downplays Italy Election Impact on Markets

Mario Draghi, President of the European Central Bank (ECB), March 7, 2013
The head of the European Central Bank is downplaying the impact of the Italian election result last week, saying uncertainty has not spread to other countries or the markets.

ECB President Mario Draghi told reporters in Germany Thursday that markets have reverted to what they were before the "excitement immediately after the elections." He also noted that Italy has already taken measures to reduce its deficit.

Critics worry that reforms in Italy, the eurozone's third largest economy, could stall given the uncertain political situation.

Voting in last week's election showed no clear winner, creating a hung parliament and diminishing prospects for a reform-minded government coalition.

The vote was the latest example of populations in the eurozone lashing out at budget-balancing measures within their governments.

Some information for this report provided by AP, AFP and Reuters.