This Great Graphic comes from the Economist. It shows that despite the decline in Italian bond yields, confidence in Prime Minister Monti continues to slump. This in turn explains why the center-right feels emboldened, let alone Berlusconi's ambitions.
If the first chart illustrates the political problem of the Monti, the second chart depicts the economic problem Italy faces and the fact that Monti's reforms have not changed the trajectory. Italy's unit labor costs continue to rise.
This is one of the dimensions of competitiveness. The reason unit labor costs are rising is not just a function of compensation but is also the result of the erosion in productivity.