After a week of political turbulence, Spain and Italy have new governments. On June 1, the Spanish parliament voted to oust conservative Prime Minister Mariano Rajoy and replace him with Socialist leader Pedro Sanchez. A few hours later, Italian law professor Giuseppe Conte was sworn in as Italy's prime minister to lead a government that includes the anti-establishment Five Star Movement and the right-wing League. The government will be confirmed by confidence votes in Parliament next week.
While these developments offer some clarity about the future of two key members of the eurozone, they also serve as evidence that the new governments in Madrid and Rome have a very hard task ahead....
