Euro Fracture: “Matters are turning serious” in Italy

It you’re looking for some Euro gloom, go no further than Ambrose Evans-Pritchard’s latest, Italy, Europe, and Red Brigade terror.   He writes that Italy risks an outbreak of terrorism if the labor market reform is rushed as the EU demands.

Here’s the money quote,

The EU has woven itself into this drama by presenting Italy with an ultimatum last week, giving the country barely 48 hours to commit to very specific and radical reforms.

It is in effect taking sides in an intensely polarized debate within Italy, intruding in the most sensitive matters of how society organizes itself. It is demanding ideological changes – in this case in favour of employers, and against unions – as a condition for further action to shore up Italy’s bond markets.

“We have three deaths in front of us: democracy, politics, and the Left,” said Fausto Bertinotti, the elder statesman of Rifondazione Communista and one of Italy’s great post-war figures.

“We are living in a neo-Bonapartist financial system. Not a single decision has been taken by the Italian parliament since the end of August except those imposed by the foreign power that now us under administration.”

Gulp.  Maybe it’s time we dust off Yeats.

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This entry was posted in Black Swan Watch, Budget Deficit, Euro, Fiscal Policy, PIIGS, Sovereign Debt, Sovereign Risk and tagged , , , . Bookmark the permalink.

One Response to Euro Fracture: “Matters are turning serious” in Italy

  1. Pingback: Tuesday 7atSeven: dimming prospects | Abnormal Returns

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