Italy's Political Crisis Fuels Fears of a New European Disaster

But it will stop there, of course

Italy's ongoing political paralysis worsened Wednesday, overshadowing fears that the financial meltdown in Cyprus could be repeated in other small eurozone states.

A month after an inconclusive election, Italy is still no closer to a new government after the third-place 5-Star Movement rejected Pier Luigi Bersani's latest request to form a coalition with his first-place Democratic Party.

Bersani has vowed not to team up with Silvio Berlusconi's No. 2 right-wing bloc, raising the chances of another election. The former prime minister is already whipping up supporters in anticipation of a snap vote, perhaps in the summer or fall.