If the potential consequences of the Italian national election were not so severe, the outcome would be the stuff of great comedy. After all, one quarter of the votes were taken by a party formed by a standup comedian, while former Prime Minister Silvio Berlusconi has again climbed to center stage and looks poised for yet another comeback.

But while Italian politics is a great spectator sport for outside observers, the real world implications of the vote are anything but amusing. The vote has shattered investor confidence, and has already sparked a run on Italian bonds and interest rates. There are fears of contagion and even the prospect of a rupture within Europe and the collapse of the eurozone.

There was no mistaking the growing unease among Italian voters over the austerity policies adopted by technocratic caretaker Prime Minister Mario Monti. After Mr. Berlusconi had antagonized markets and EU mandarins alike with his posturing and empty and broken promises, Mr. Monti was recalled to government and made prime minister with a mandate to cool the anxiety that had pushed Italian bond yields to new heights, threatening Europe's third largest economy with a default.