Guiseppe Conte, Italy’s prime minister recently resigned from his post in an effort to save face from a impending vote of confidence. This had led to speculation on whether something else is happening behind the scenes.
Italy’s two populist parties, who have different program goals, tried to work together. However, through EU restrictions and budgetary rules, they found it hard to get anything really done. Because of these issues and the fact that Conte has spent the majority of his time trying to find common ground between the parties, the Italian economy has started to stagnate and has fallen to recession.
It seems that the rise of the populist movement with Lega/5 star being on one side and the EU on he other, is only fueling more speculation on whether this government can hold on any longer. A call for early elections could only lead to further problems and a collapsed government, or it could save everything if only with a band-aid.
With Britain still in the process of leaving the EU (brexit), or comic up with a deal on the whole thing, this could be a true shake up of the entire system. The entire house of cards could fall at any time and we have seen this trepidation in all of the markets as they wobble from side to side as if drunk.
This is important because Italy, is the number 3 economy in the entire euro-zone and if it falls, there is a good chance that it will bring the entire castle down on its head. The fact is that those in power in Italy have been flirting around with the idea of bringing in a new currency and we have all seen what happens in this tightly controlled power grid when kids don’t want to play alone by the “rules” When you combine this willingness to “go-it-alone” against the wishes of the EU, and the turmoil being caused on a continual basis by Brexit, this is a tender-house waiting to implode at any moment.
Why would turmoil and economic collapse in Italy be such a bad thing? It’s simple. Italian debt is in the hands of almost every European bank— hundreds of billions worth. So, its safe to say, many are looking at this with held breathe wondering who will blink first. The scary part of this, is since Italy is so tied to everyone’s economy, when the match is struck then it will inevitably begin feeding itself lighting everything on fire in its path.
Keep a close watch in the crisis in Italy. it is something they wont talk about on main stream media.