29.05.2018 - Studies

New elections do not solve Italy's euro problem

by Norbert F. Tofall

President Sergio Mattarella seems to see the danger of a withdrawal of the euro from Italy as very real. Otherwise he could have appointed Paolo Savona and let the formation of the Lega and five-star government run its course.

The recently negotiated government programme of the Lega and five-star government is likely to be adopted even after new elections in the autumn. According to current election polls, both parties are asserting themselves and could even make gains. A coalition of Lega and five-star will be a coalition of increased public spending and public debt. Since there is no orderly withdrawal procedure from the euro, the danger of a disorderly break-up of the euro zone increases. The individual euro countries should have emergency and transition scenarios in their drawers.


Please note: This study is available in German only.

Download study as PDF (Reading time ca.10 min)

Legal notice

The information contained and opinions expressed in this document reflect the views of the author at the time of publication and are subject to change without prior notice. Forward-looking statements reflect the judgement and future expectations of the author. The opinions and expectations found in this document may differ from estimations found in other documents of Flossbach von Storch AG. The above information is provided for informational purposes only and without any obligation, whether contractual or otherwise. This document does not constitute an offer to sell, purchase or subscribe to securities or other assets. The information and estimates contained herein do not constitute investment advice or any other form of recommendation. All information has been compiled with care. However, no guarantee is given as to the accuracy and completeness of information and no liability is accepted. Past performance is not a reliable indicator of future performance. All authorial rights and other rights, titles and claims (including copyrights, brands, patents, intellectual property rights and other rights) to, for and from all the information in this publication are subject, without restriction, to the applicable provisions and property rights of the registered owners. You do not acquire any rights to the contents. Copyright for contents created and published by Flossbach von Storch AG remains solely with Flossbach von Storch AG. Such content may not be reproduced or used in full or in part without the written approval of Flossbach von Storch AG.

Reprinting or making the content publicly available – in particular by including it in third-party websites – together with reproduction on data storage devices of any kind requires the prior written consent of Flossbach von Storch AG.

© 2024 Flossbach von Storch. All rights reserved.