Italy needs to stick to Monti's reform path - Merkel ally

BERLIN (Reuters) - Italy needs a functioning government that will press on with outgoing technocrat Prime Minister Mario Monti's economic reforms, a key ally of German Chancellor Angela Merkel said on Tuesday.

Italy, the euro zone's third largest economy, faces political deadlock after an election that has left no political grouping with a clear majority in parliament as many voters rejected Monti's German-backed austerity policies.