Italy’s problem is Europe’s problem

The Italian political crisis eased last week, but the threat to the eurozone from Italy’s debt mountain is very real

3rd June, 2018
Italy’s problem is Europe’s problem
The Italian and EU flags fly at the Quirinale Palace in Rome: Italy’s euro crisis is easing, but not going away any time soon Picture: Bloomberg

The last fortnight has been a real rollercoaster for the European markets and politics. Only two weeks ago, I wrote about the problems of rising political populism in Italy and Spain as the signals of a broader trend across the block’s member states. Last week, in Spain, the no confidence motion in Mariano Rajoy’s government played as a sideshow to Rome’s drama.

The timeline of events in Italy provides...

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