Italian president cancels participation to event due to 'disturbing political event'

FXstreet.com (Barcelona) - The euro and the Italian market fell today following the news that Italian President Giorgio Napolitano unexpectedly canceled his appearance at a conference in Rome due to the the fact that he needed to give his full attention to a “sudden political development that is institutionally disturbing.”

Deputies from Silvio Berlusconi's PDL party warned late Wednesday that they could step down if their leader was expelled from the Italian Senate, following his tax fraud conviction. A special Senate committee meeting will decide whether to revoke his mandate during a vote scheduled for October 4.

Napolitano's announcement today shook the markets as it might mean that the stability of Enrico Letta's government is being undermined.