EU WILL PAY: Italy’s political meltdown will trigger the end of EURO
ITALY’S constitutional crisis, which is TERRIFYING the EU, is set to spread to Greece and other European nations as countries turn their back on both the euro currency and the EU project.
Greek Foreign Minister Nikos Kotzias has warned specifically that financial instability in Italy could cause further economic problems for Greece.
After eight years of misery, Greece is set to end what it hopes to be its final bailout programme in August this year, and Mr. Kotzias told a news conference with his German counterpart, Heiko Maas, that any situation in Italy could have grave knock-on effects.
He said: “We are worried that if there is instability and it has an impact on the financial situation, this financial situation could create extra problems for us.
“We want a stable, democratic and pro-European Italy.”
Greece and Italy are the two countries most burdened by debt in the Eurozone – Greece’s debt still stands at a massive 180 percent of GDP with Italy in second place at 132 percent. After seven years of austerity and rescue loans amounting to around £238.31 billion, Greece has been fighting for the bailouts and subsequent austerity measure to end this summer.
In principle, from August, Greece will no longer receive money from creditors and be free to finance itself in the public markets, however with Italy potentially returning to the polls in August the sentiment could well change as finance ministers react to the increased inherent risk in two heavily indebted Eurozone nations breaking free from their EU-imposed austerity shackles