Wednesday May 16th., 2018
The most likely scenario after the elections on Sunday is that no single party will reach a majority.
With half the ballot counted, it looked almost certain that none of Italy's three main factions would be able to rule alone and there was little prospect of a return to mainstream government, giving the European Union a new headache to handle.
Scenarios now include the creation of a more euro-sceptic coalition, which would likely challenge EU budget restrictions and be little interested in further European integration, or swift new elections to try to break the deadlock.
Mike Ingram, Chief Market Strategist at WHIreland, told Express.co.uk that in recent years markets have reacted negatively to financial and political instability in Greece - and could do the same if instability in Italy continues after Sunday’s vote.
He said: “The Italian economy is eight times larger and a signatory to the Treaty of Rome, so impact on the European economy may be felt much more strongly.
“Although a distant prospect right now, Italy is a potential Euro Killer.”
Italian election 2018: What will Italy general election mean for Eurozone and euro?
THE EUROZONE could become a victim of the Italian Election 2018 as Italy, burdened by €2.2 trillion of debt, seems to have voted with the country’s economic and Eurosceptic woes firmly in the forefront of people’s mind. What will Italy general election mean for Eurozone and euro?
The economy was thought to be the biggest influencer over Sunday’s Italian Election 2018, with Silvio Berlusconi back in the spotlight as he leads the centre-right coalition in battle against the Five Star Movement’s Luigi Di Maio and the Democratic Party’s (PD) Matteo Renzi.
Italian
public debt has risen from an already high 100 percent of GDP at the end
of 2007 to more than 130 percent, with only Greece facing a more dire
economic situation in Europe.
And bad loans from businesses hurt by the ailing economy have built up in the banking system after companies were unable to service them - making the pile of non-performing loans the biggest of any country in Europe.
The bad loan stack is now so vast it amount to almost a quarter of the total in the EU.
And bad loans from businesses hurt by the ailing economy have built up in the banking system after companies were unable to service them - making the pile of non-performing loans the biggest of any country in Europe.
The bad loan stack is now so vast it amount to almost a quarter of the total in the EU.
Related articles
What will Italy general election mean for Eurozone and euro?
The most likely scenario after the elections on Sunday is that no single party will reach a majority.
With half the ballot counted, it looked almost certain that none of Italy's three main factions would be able to rule alone and there was little prospect of a return to mainstream government, giving the European Union a new headache to handle.
Scenarios now include the creation of a more euro-sceptic coalition, which would likely challenge EU budget restrictions and be little interested in further European integration, or swift new elections to try to break the deadlock.
Mike Ingram, Chief Market Strategist at WHIreland, told Express.co.uk that in recent years markets have reacted negatively to financial and political instability in Greece - and could do the same if instability in Italy continues after Sunday’s vote.
He said: “The Italian economy is eight times larger and a signatory to the Treaty of Rome, so impact on the European economy may be felt much more strongly.
“Although a distant prospect right now, Italy is a potential Euro Killer.”