LONDON, Aug 26 (Reuters) - Italian stocks led euro zone
bourses lower on Monday as mounting concerns about a government
crisis in the country fuelled a selloff in shares exposed to
Rome's government debt.
The euro zone blue chip Euro STOXX 50 index was
down 0.6 percent at 2,809.92 points at 0826 GMT.
Italy's FTSE MIB was down 1.6 percent after members
of Silvio Berlusconi's centre-right party openly warned they
would bring down the government if the former premier is
expelled from parliament.
"It doesn't look like the politicians will find a compromise
to get out of this crisis, which in turn puts all measures that
need to be taken to spur the economy on ice," a Milan based
"There is the risk that this could hit our economic recovery
at a time when the country has shows some signs of a pick-up."
Italian banks UniCredit and Intesa Sanpaolo
, and insurer Generali, down between 2
percent and 3 percent, were the biggest fallers on the Euro
STOXX 50 as investors worried about their holdings of Italian