It’s official—Italy’s leading political party says it can’t form a government

The Democratic Party’s Pier Luigi Bersani told outgoing Italian President Giorgio Napolitano that he was unable to win support from Silvio Berlusconi’s center-right People of Freedom Party, nor Beppe Grillo’s anti-establishment Five Star Movement, Bloomberg reports. This means he was unable to form a majority government.

Napolitano will likely move to form a broad coalition government and select his own cabinet in order to avoid another election. As we’ve explained, the likely fragile government that will come out of this isn’t a good sign for the euro zone.