Tuesday 29 May 2018

Italy is diving in a deeper political crisis (2)

Overall, the bond market in the euro area has become chaotic after the published documents.
In fact, Italy's debt problem is becoming more and more obvious. The country's debt to GDP is at the expense of 132%. And by adding to this size the much larger size of Italy than Greece, what could be the consequences for the EU?
For comparison, the debt of Greece, which was saved by its European partners, amounts to 180.8%.
According to Italian publications, two of the top populist parties, following the inconclusive results of the March elections, intend to ask the ECB for a 250 billion-euro debt relief program.
According to the 39-page document, there is also a possibility to look for a way out of the eurozone. This is a proposal the two parties have made in the past.
Following the publication of the report, the two populist parties have said that this is an old version that has been seriously modified. Particular attention was paid to the part leaving the eurozone, saying that the single currency is not in doubt at the moment.


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