Merkel : Voters to keep Italy on right path

German Chancellor Angela Merkel said Tuesday that she believed reforms by Italian Prime Minister Mario Monti and the Italian people would vote to continue along the right path. "I support what Mario Monti's government has put in place," Merkel said at a press conference with visiting Kyrgyzstan President Almazbek Atambaev, adding that the reforms carried out by Monti have helped win back market confidence. "Therefore, the Italian people will vote to ensure that Italy stays on the right path," she added. Merkel's remarks followed Monti's announcement that he would soon step down after he lost a parliamentary majority as allies of former Prime Minister Silvio Berlusconi walked out. Berlusconi has announced a return to politics, accusing Monti of being "German-centric." Monti has been a calming influence on financial markets by pushing through austerity measures that assuaged investor fears, reducing the country's borrowing costs and lending stability to the Italian Stock Exchange in Milan. Monti will likely stay on as prime minister until the country's 2013 budget is passed at the end of this month, but markets are already reacting negatively to his likely departure.