| Author (Person) | Otero Iglesias, Miguel |
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| Series Title | EUROPP Blog |
| Series Details | 16.02.17 |
| Publication Date | 16/02/2017 |
| Content Type | Journal | Series | Blog |
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Paolo Gentiloni took over from Matteo Renzi as Italian Prime Minister in December 2016, but the country’s politics remained volatile amid infighting within Renzi’s Democratic Party and calls from the Five Star Movement for a referendum on Italy leaving the euro. Miguel Otero-Iglesias highlights the widespread anger some voters feel toward the EU and Germany, but suggests that even if Grillo were to win the next election an ‘Italexit’ would be unlikely. See also the separate article 'Italexit is not a solution for Italy’s problems' accessible via the related url below: Beppe Grillo’s Five Star Movement riding high in the polls in Italy has led to speculation over the prospect of the country leaving the euro. Lorenzo Codogno and Giampaolo Galli argue that an ‘Italexit’ would be a catastrophic scenario, with incommensurable economic, social, and political costs lasting for many years. They note that redenomination, and a likely default on debt obligations, would not be a solution to the problem of a high public debt and would produce significant financial and economic instability. A far better and less costly solution would be to address Italy’s underlying problems, allowing the country to survive and thrive within the euro by enhancing potential growth and economic resilience. |
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| Source Link | http://blogs.lse.ac.uk/europpblog/2017/02/16/italys-struggle-with-the-euro-straitjacket/ |
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| Countries / Regions | Italy |
