Italy could ‘sink like TITANIC’ warn banks in DOOMSDAY economic warning
ITALY’s euroscepticism could make the country sink like the Titanic and investors should prepare for the worst, according to new reports drafted by three of the world’s biggest investment banks.
By ALICE SCARSI
Express.co.uk
Mon, Aug 13, 2018
Financial experts from Citi, Barclays and Credit Suisse agree Rome is nearing a new economic crisis that could bring the country to its knees.
The main ingredients would be the country’s new euroscepticism, the reforms promised by its populist government and Rome’s long-standing financial weaknesses.
The paper, drafted by Citi, drew a worrying comparison between the tragedy of the Titanic and the economic and political situation in Rome.
It said: “Investors should keep in mind that in the sinking of the Titanic the fate of first-class passengers was not very different from that of those traveling in the third class.”
The US-based banking giant believe the country is in a similar situation to the one it was in 2011, when Italy was suffering the worst consequences of the 2008 crisis.
The report, aimed at investors operating in Italy’s financial market, added: “Italy is not in a better position than in September 2011, when it was at the height of the crisis that led to the dismissal of Silvio Berlusconi.”
The “anti-europeism” which now characterises the once europhile country is a great source of concern for the markets, according to another report by Credit Suisse, published on July 6.
The analysts believe the appointment of Alberto Bagnai and Claudio Borghi, two eurosceptic and anti-euro personalities, “has determined the rise in the spread in June”.
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