Rome, Italy â€” Since the middle of last year, the Eurozone has done a good job of quieting its crisis.The ECB stepping in with a promise to buy debt has reduced sovereign borrowing costs, and there’s very little tension on the financial system.
Furthermore, mainstream leaders across virtually all parties in all countries support the existence of the Eurozone in its current form.
There’s always been one risk, however: Voters.
There’s always been the chance that somewhere (Spain, Greece, Italy, etc.) would have a vote, where the pissed off voters came through with a rejection of the status quo, installing politicians completely at odds with the game plan.
Italy hasn’t quite gone there, but it’s close.
Tonight the voters have stated — in the worlds of one official from the leftist party — a rebellion. They’ve given huge numbers to both Berlusconi (whom the rest of Europe can’t stand) and Beppe Grillo, the euro-sceptic, comedian populist.
It remains unclear how things will shake out, except we know that at best Italy has a very fragile government, that no longer has the momentum to continue on any existing reform path.