Italy Is The Most Important Political Hazard In Europe

Fabio Fois, a Barclays economist, says Italy risks political paralysis if it cannot approve a better voting system ahead of next year’s election.
However in Italy, polling data shows there is little support for the euro and if a referendum were called then many would be voting to leave the euro.
The situation may not necessarily end in a full-blown crisis as in 2011, but it will require meaningful political and policy change.
“As for the timing of the next general elections, our base-case remains that Italy will go to the polls in the spring of 2018, after the end of the current parliamentary term.
“That could be potentially disastrous for the monetary union, for the European Union.

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