Italy's economy minister expects subdued market reaction to crisis


MILAN, Sept 29 (Reuters) - Italy's public accounts are inorder and financial markets have already factored in politicalinstability, Economy Minister Fabrizio Saccomanni said in anewspaper interview on Sunday hours after a political crisisleft the government paralysed.

"The markets will take account of many things including theeconomic outlook which is clearly improving... I hope that as ofMonday this trust (by the markets) will be confirmed,"Saccomanni told financial daily Il Sole 24 Ore.

In a dramatic move on Saturday Italy's centre-right leaderSilvio Berlusconi pulled his ministers out of the cabinet,effectively bringing down the government of Prime MinisterEnrico Letta.

Growing political tensions have increasingly worriedinvestors with Italy's borrowing costs hitting a three-monthhigh at an auction of 10-year bonds on Friday.

"I think the uncertainty connected to the government'sinstability has been to a large extent already factored induring the last few weeks," Saccomanni said.

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