Skip to main content

Newsroom

April 29, 2013

Market Insight: Italy will lead eurozone revolt against austerity

What do the following have in common: the tax imposed on Cypriot bank deposits last month, a Portuguese court’s annulment of some of the government’s austerity measures, and the recent political stand-off in Italy?

They all suggest the European crisis is far from over despite the calm brought to financial markets by European Central Bank President Mario Draghi’s promise last summer to buy unlimited amounts of the debt-ridden countries’ obligations.

“There is a sense of foreboding in the region. The risk of a flight of bank deposits to safer countries has risen, and sharp economic contractions extended to Germany and France in the final quarter of 2012. The European Commission anticipates that regional unemployment will continue to rise and reach a record 11 per cent in 2014.

Fortunately, these dark clouds come with a silver lining. More governments are recognising that the current system of bailouts accompanied by austerity dooms the economies to perpetual recession and worsens debt ratios. While smaller countries such as Greece or Portugal lack the leverage to force an alternative solution, the prospect of a long recession in Spain and Italy could be a game changer.”

***

Read full Financial Times article here

 
 
In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today