The current political stalemate in Italy and the turbulence in its financial markets would undermine the recovery of Italy from its longest recession in twenty years. This was an analysis from an official from the Bank of Italy.

Giorgio Napolitano, Italy's President has sought out Pier Luigi Bersani, the current center-leftist leader to gauge if he can win support in parliament for the formation of a government to end the current deadlock with an election without a clear majority.

It has been nearly a month since the Italian elections and the country is still without a government in place. The third biggest economy in the Euro Zone is facing a new round of turmoil especially in light of the Cyprus bailout situation.

According to Fabio Panetta, Deputy Director General of the Italian Central Bank, "In the past few weeks, uncertainty about the outlook for the Italian economy has been reawakened. The very moderate recovery foreseen for the last part of the year is under threat by the unpredictable domestic political situation and the re-emergence of financial turbulence in the Euro area."