Moody's has placed a dozen Italian banks and several major companies on negative ratings watch, as the country's political problems drag on. On Wednesday, the ratings agency said it was putting Italy's B-A-A-Two rating on review for a possible downgrade over the crisis. The country's energy giants, postal service and public TV network were also put under negative watch. CGTN's Ma Ke has more.

Financial markets have been on a roller-coaster ride over the past few days. The euro zone's third-largest economy has been elbow-deep in political turmoil since the March 4th general election failed to produce a clear winner.

A populist coalition of the Five Star Movement and the nationalist League may now fall apart after President Sergio Mattarella's vetoed their choice for economy minister, eurosceptic financer Paolo Savona.

DANILO TONINELLI 5-STAR MOVEMENT LEADER IN SENATE "Savona's step back could allow us to create a government with a contract that is good for citizens, families, workers, businesses."

LUIGI DI MAIO 5-STAR MOVEMENT LEADER "On the Festival of the Republic, June 2nd, we will ask for something very simple: Italy must have either a political government or new elections."

The country's identity struggle in the EU is fast developing into a global financial crisis.

Though Milan stocks closed up 2.09 percent on Wednesday, investor doubts over Italy's financial stability remain. The country is struggling under a debt mountain of 2.3 trillion euros.

Economists are worried that Europe may relive the nightmare when Greece nearly left the eurozone in 2015 and set off global economic tumult.

Italy's economy is nearly 10 times that of Greece, and Rome is heavily indebted to creditors around the world.

ROBERT HALVER CAPITAL MARKET ANALYST "If Italy should fall then it would tip the eurozonee, so there will be a quick solution. The EU and the ECB will of course prop Italy up. Or to put it another way: Italy will make demands and the EU and the ECB will have to comply."

Prime Minister-designate Cottarelli is now discussing a technocratic government with the president. But Cottarelli might give up the post under pressure from angry Italians and the two populist parties. If that happens, President Mattarelli will be forced to dissolute the parliament and hold a new election--one that equals a referendum on leaving the eurozone.