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.