Great Graphic: Italy's PMI and GDP

This Great Graphic is from the Markit Economics, which compiles purchasing manager surveys.  It shows how well the Italy's GDP tracks the composite PMI.  

Although the PMIs have stabilized, still low levels warn that the economy will not only contract in Q1 but likely in Q2 as well. 

Italy's political situation, however,  is the main focus.  The selection of the next president is set to begin April 18.  The 945 members of parliament and regional representative will vote--1007 in all.  The first three votes require a 2/3 majority, which does not look very likely.  

After the three attempts, a simply majority is needed.  Meanwhile the Florence mayor Renzi, is stepping up his challenge to Bersani.  Renzi is more willing to form a coalition with the center-right.  Such government on a limited agenda still looks most likely, and next week's report by Napolitano's commission is expected and may pave the ground for a political deal.