Ioannis Glinavos via Macropolis | Italy’s political crisis and incoming government brings the European Central Bank back to making unpleasant choices as it tries to balance market risks with charting a path out of never-ending stimulus and crisis response measures.
Israel Rafalovich | In the last few days a saying has frequently been heard in the corridors of the European Commission: “Spain is not Italy. With the new Spanish government it is now a Spanish spring.”
The twentieth anniversary of the creation of the ECB coincides with renewed financial tensions in the Eurozone. According to Caixa Research, the irreversability of the single currency requires ambitious advances in the European project.
Giacomo Bracci | The result of the latest Italian political elections has been interpreted by many observers as the outcome of deep, popular discontent. Recent developments in the country have also revived the possibility once again of an Italexit in the political debate of the entire euro area.
Concern about Italy is the order of the day and the situation in that coutry will continue to grab investors’ attention. To such an extent that a photograph of what’s going on there is required, starting with this key question: we are facing a problem of public, not private debt.
Ioannis Glinavos via Macropolis | The creation of a populist government in Italy has sent shivers down the spines of those who have been following developments in Greece since 2015. Indeed, there are enough similarities to give rise to concern. The following discussion offers three key reasons why Italy (and Europe by extension) is about to head into some serious trouble.
The two parties that are about to form the next Italian government are driven by a profoundly anti-democratic culture. Their claim to so-called direct democracy exercised via the web on a platform owned by a private company is not just a staple of populism, but an attempt to fuel general discourse against any party in the name of the people.
Spain’s economic growth has only just begun. According to Morgan Stanley’s macroeconomists, the last Spanish cycles have lasted increasingly longer, from ’82 to ’93 and from ’94 to ‘2013.
Intermoney | The 5 Star Movement and La Liga finally reached an agreement to govern Italy on Thursday after more than two months of political deadlock. But it is still not known who will be prime minister.
Paula Sampedro (Link Securities) |There are various fronts open on the political front during this week. Specifically, the Italian political parties La Liga (extreme rightwing) and the Movimiento Cinco Estrellas (anti-establishment) are expected to present their programme for government to the country’s president Sergio Mattarella, after reaching an agreement to form a new government in Italy.