It’s only a matter of time before Italy’s Black Wednesday moment

The Italian economy has barely grown since the euro was formed in 1999
The Italian economy has barely grown since the euro was formed in 1999

One of the items for discussion at this week’s meeting of the European Council will surely be the situation in Italy. The recent European elections were a great victory for Matteo Salvini, the leader of the League, one of the two partners in the governing coalition. No doubt emboldened by this result, he has called for tax cuts that would, if implemented, surely cause Italy to break the EU’s borrowing limits. The EU Commission is supposedly contemplating whether it should begin a disciplinary process against Italy that could end up with the imposition of substantial fines.

The markets seem to be fairly relaxed about the Italian situation. But you shouldn’t take comfort from this. They are focused...

To continue reading this article

Start a 30-day free trial for unlimited access to Premium articles

  • Unlimited access to Premium articles 
  • Subscriber-only events and experiences
  • Cancel any time

Free for 30 days

then only £2 per week

Save 25% with an annual subscription

Just £75 per year


Register for free and access one Premium article per week

Only subscribers have unlimited access to Premium articles.
Register for free to continue reading this article
Or unlock all Premium articles.
Free for 30 days, then just £1 per week