The recent resignation of Italy’s Prime Minister Mario Monti is seen by many as a massive blow to the eurozone’s rehabilitation efforts. The man, often referred to as Super Mario, was for a long time the favorite technocrat of the austerity-minded European countries. Monti’s untimely departure might delight some Spanish and Greek politicians who struggle to keep their countries afloat in the face of tough austerity measures, shrinking work-forces and dwindling cash flows.

Where goes Italy, there usually goes Spain. If Italy’s new leadership is not interested in imposing Monti’s formula, then it is likely that Italy and subsequently Spain will falter and bring down the economic union. This might also mean that the anxious northern creditors will never be paid back in full.

Monti’s realism coupled with an understanding of southern European fiscal mentality might come haunt the Eurozone protagonists who wish to keep the zone together at any cost. Monti famously observed that “not all Greeks are ready to do whatever is necessary to stay in the euro”. Monti’s words might indicate that Greece, together with Spain and possibly Italy will form a pact to oppose tough austerity measures promulgated by northern European creditors.

Monti’s resignation came as a consequence to an announcement by Silvio Berlusconi’s People of Liberty Party (PDL) that the party no longer supports Monti’s government. The bombastic Berlusconi who has been embroiled in sex scandals, pronounced that he will be leading PDL into the next election in early 2013.