Bigger threat than BREXIT: Italy’s populist drive to quit the Eurozone would DEVASTATE EU

Friday, March 9, 2018
By Paul Martin

ITALY leaving the European Union and the Eurozone would be a “disaster” for the bloc from both a political and economic perspective, as it could lead to a turmoil in the financial markets and the departure of more countries, experts have claimed.

By ALICE SCARSI
Express.co.uk
Fri, Mar 9, 2018

The shocking outcome of the election that took place in Italy last Sunday has paved the way for populist parties Lega and Five Star Movement, which together gathered more than 50 per cent of the votes.

Both the forces are eurosceptic and have in the past promoted the idea of pushing Italy outside of the EU and the eurozone.

Experts claim the possibility of a so-called Italexit would be devastating for the EU, which would see a second country leaving its borders in less than two years.

Lorenzo Codogno, former general director at the Treasury Department of the Italian Ministry of Economy and Finance, thinks Italy exiting the European Union would lead to a “storm in the markets”.

He said: “Italy is a big country, the third-largest national economy in the eurozone and one of the six founding members of the bloc.

“If it left the Union, there would be a storm in the markets, Italy would suffer but Europe would also be hugely affected.

“Italexit would be something very difficult to manage for the EU, so the bloc would do anything to make the country remain.”

Market analyst and CEO at Explain The Market Guy Shone thinks that Italexit would highlight the divisions within the EU, although he sees an exit of Italy too dangerous for a country with such a fragile banking system.

He said: “If Italexit were to happen, I think it would be reasonable to imply that the EU in its current form would be under threat and would be failing to prove its essentiality.”

Leaving the eurozone would be even more difficult than the process undertaken by the UK of leaving the European Union.

The Rest…HERE

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