Spiralling Italian debt – a political and economic ‘monster’

Spiralling Italian debt - a political and economic 'monster'

Washington

JUST when it seemed safe not to worry about the next financial crisis, up pops Italy. In Italy, lavish plans may propel next crisis, warned The New York Times. Or, Italy’s budget rattles financial markets on debt crisis fears, said Sky News.

Exactly how a crisis might emerge isn’t clear. Would Italian interest rates soar, reflecting fears that the country can’t service its colossal debt? Would Italian banks weaken because their bonds lose value? Would there be spillover effects on other countries? Might Italy abandon the euro?What is clear is that the new Italian government is flirting with trouble. All […]

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