EU Nobel-winners pay tribute to Monti's 'great job'

(OSLO) - European Union leaders in Norway to collect the Nobel Peace Prize on Monday hailed the "great job" done by outgoing Italian Prime Minister Mario Monti.

"Mario Monti did a great job as prime minister," EU president Herman Van Rompuy said in an interview with a small group of journalists, including AFP.

"He restored confidence in Italy and Italy is a key player in the eurozone. So he was extremely helpful also in keeping stability in the eurozone," Van Rompuy added.

During a weekend of political drama, Monti announced he would soon step down and former leader Silvio Berlusconi launched a comeback bid, prompting financial analysts to predict stormy times ahead for Italian markets.

Its stock market dropped more than three percent in early Monday trading and borrowing costs spiked amid jitters over the situation.

But Van Rompuy played down fears that Italy's political drama would revive turmoil on eurozone markets after times of apparent appeasement.

Italy in any case was planning elections in March so "elections in February or March are very close, so let's also put all this in the right proportion," he added.

"We're speaking about the possibility of anticipated elections for one month."

He refused further comment on the Italian drama other than to say the country needed to continue on the path of economic reforms.

But European parliament president Martin Schulz, one of three EU leaders who was to collect the Nobel at an Oslo awards ceremony later in the day, was more forthright.

The German Socialist, known for trading barbs in the past with Silvio Berlusconi, told AFP in an interview that "I am very sorry Monti could not stay until the end."

"I am not enthusiastic" about Berlusonci's return to the political scene, he added.

"I hope Italy will not lose its stability because the stability of a state quickly affects the stability of the European Union in its entirety."

"I see that some parties are remaining faithful until the last minute to this (reform) plan and that there are others like Mr Berlusconi's party who are leaving this coalition of responsibility."

"So I am concerned," he added. "Italy needs a stable government."