The radical reformist and largely Eurosceptic coalition parties in the Italian government are declaring radical views. They have asked for 250 billion of Euro debt to be written off. Although it has been subtly since denied, it is entirely in character with their previous pronouncements and they still maintain that a pre-Maastricht system would be their preference. Apparently Italian bond interest rates have increased. Additionally according to the FT (intermittent paywall):
The anti-establishment Five Star Movement, the leading vote getter in March’s general election, tempered its anti-euro rhetoric during the campaign. But Wednesday’s call for the EU to return to a period before Brussels forced strict budget discipline to foster economic convergence among member states suggested the party was warming to the views of its potential coalition partner, the far-right League. …Luigi Di Maio, Five Star’s leader. “I see a certain fear among the Eurocrats. But they don’t scare me.”
Additionally Matteo Salvini, the leader of the (Right Wing- used to be Northern) ‘League’, and junior partner in the coalition, is now talking about #ItaliansFirst, which must apply to money as well.
Bepe Grillo, the original founder of the Five Star movement and a comedian by trade, has a very good understanding of money and this Youtube video from way back in 1998 is philosophically, as up to date as ever and well worth 11 minutes of your time.
I suggest we have to put our trust in this Italian coalition, which is the Euro’s seeming last hope for becoming a responsive and relevant supra-national currency. As the third largest Euro economy, Italy, unlike Greece, has some power. If the Italian government are successful in achieving Euro loan write-offs (as, I suggest, should be the aspiration of us all) I wonder how the left wing Brexit contingent, the so called Lexiteers, will react? Germany, where Mr Scholz, the new finance minister, who has, allegedly, an ambition for a budget surplus of 1 per cent of GDP which would, eventually, eradicate all public debt, will not be pleased, but perhaps the Italians will be able to enlist President Macron’s assistance in creating a more responsive Euro?
We can but hope…