Monti undecided on running for vote, reassures markets

(OSLO) - Outoging Italian premier Mario Monti said Monday he had not decided yet whether to run for election as he moved to reassure markets there would be no policy sea-change despite the nations's political drama.

"I am not considering this particular issue at this stage," Monti said when asked whether he intended to run for election.

Monti was in the Norwegian capital to attend the Nobel Peace Prize award ceremony to the European Union.

"All my efforts are being devoted to the completion of the remaining time of the current government, which appears to be a rather short time, but still requires intensive application of mind and energies for my part as well as my colleagues," he added.

As markets responded, sending the Milan exchange skidding to close 2.2 percent down, the prime minister also known as "Super Mario" moved to reassure.

"Let me also remind the markets that the current government has not left, is fully in charge, and will be so until after a new government comes up after the elections."

He said the market response was entirely normal but expressed hopes it "will be contained."

Monti, a former top eurocrat, was thrown into politics late last year after an emergency appointment aimed at setting market-hit Italy back on the economic rails.

During a weekend of high political drama, he announced he would soon step down and former leader Silvio Berlusconi launched a comeback bid, stoking fears of new turmoil on both Italian and eurozone markets.

But Monti said in Oslo that he was "very confident that the Italian elections when they come will give room to whatever coalition or government that will be in my view a highly responsible EU-oriented government which will be in line with the huge efforts already pursued by Italy in terms of structural reform."

Earlier, EU president Herman Van Rompuy praised Monti.

"Mario Monti did a great job as prime minister," Van Rompuy told journalists.

"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," he added.

Germany's foreign minister and a top European Central Bank member meanwhile urged Rome to press ahead with reforms introduced by Monti.