Italian debt ten times higher than Greece
Italian debt, according to the BBC, continues to become more of a threat to EU stability than Brexit. As already detailed here, they report that Italy’s current debt dwarfs that of the Greek crisis that last threatened Europe: “While it’s easy to get distracted by trade wars or Brexit uncertainty, there’s a financial iceberg on the horizon that could threaten all our well-being“.
Forbes website, with its American perspective, says “Forget Brexit, there’s something far more worrying afoot in Europe: Italy’s debt problem. It’s on course to spark an existential crisis for Europe’s single currency area, the eurozone”. While the European Union will aim to fix the problem it looks like they’ll be no escape from the coming calamity, experts say. It quotes a recent report from London-based financial firm TS Lombard
“[…] it does seem a matter of ‘when’ rather than ‘if’ – another full-blown sovereign debt panic will happen”. The report continues bluntly:
The bottom line is that as and when a serious new crisis blows up, the Italian government is positioning itself to demonstrate to its voters that it has not sought to leave the Eurozone, but rather that the Eurozone is leaving Italy.
Forbes continues: “In other words, Italy’s government is gearing up to inform the European Union it has had enough. Then the ruling parties will tell Italy’s population that the EU is to blame for everything. When that happens – TS Lombard is correct that it is all but guaranteed – a financial Tsunami will hit stock markets across the world”.
Seasoned market observers may remember the Greek crisis of a decade ago. This will be the same only far bigger because Italy’s economy, the eighth largest in the world, is approximately 10 times as big as Greece’s. As is Italy’s debt.
The Express has an interesting article: “How William Hague compared eurozone to ‘building on fire without exit’