The economic and political crisis brewing in Italy was, until recently at least, going largely unnoticed.
Italians will have a say on reforms to its Senate, the upper house of parliament, in October.
The proposed reforms are widespread, and if approved could improve the stability of Italy’s political set up and allow Prime Minister Matteo Renzi to push through laws aimed at improving the country’s economic competitiveness.
If denied, Renzi’s government will most likely fall, plunging Italy back into the type of political chaos last seen after the ousting of former Prime Minister Silvio Berlusconi, according to Deutsche Bank.
The country is also contending with a banking crisis, and a stagnant economy with
crushingly low productivity, a history of missing growth targets, and generally underperforming the rest of Europe in recent years. All this led the
All in all, things don’t look particularly peachy for Italy, especially when warnings that the country’s woes — and not Brexit — could be the catalyst to tear the Eurozone apart in coming years.
But what exactly are the biggest issues that present risks to Italy and its political and economic stability? Thankfully, following its recent mission to the country, the International Monetary Fund has produced a handy flow chart, or “risk matrix” showing all the threats to stability in the country.
It includes growing tensions in the Middle East, the UK’s vote to leave the EU, the rise of populism, and of course, Italy’s banking crisis which — despite steps being taken towards a solution — is still a massive threat.
Check it out below:
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