Rehn worried about political uncertainty in Italy ahead of Senate vote on Berlusconi

FXstreet.com (Barcelona) - European Commissioner for Economic and Monetary Affairs Olli Rehn gave a speech at the Italian parliament today in which he stressed that the uncertain political situation in Italy is holding back investment in the country.

"Particularly in Italy, where the economy is weak, political uncertainty is a brake on investments," Rehn told Italian lawmakers.

He remarked that scrapping the unpopular property tax in August could hinder the progress in meeting fiscal commitments and urged Italian officials to implement further structural reforms in order to spur the much needed growth in the country.

Former Italian PM Silvio Berlusconi, convicted for tax fraud last month, could now be facing an expulsion from the upper house. The Italian Senate committee will decide that in a vote scheduled for tomorrow.

Should the Silvio Berlusconi be voted out of the upper house, the center-right leader and his allies could withdraw their support for Prime Minister Enrico Letta's fragile coalition government which could in turn further destabilize the situation in the country.