The recent Elections in Italy and the Economic condition of the country which has high unemployment and rising costs, have created doubts and shudders in all the member countries of the EU.
The reactions in the Press are often incoherent and do little to explain to EU citizens what could happen next ! The fact that EU Leaders and Ministers are seriously preoccupied by the Italian demise is clear : the country is heading towards "bankruptcy" or "insolvency" !
On a much smaller scale Greece was also facing similar problems in recent years. BUT, Italy has the 3rd largest Economy in the EU and the EURO is its currency !
It is the EUROZONE countries which will feel the brunt of any swings in the value of the EURO on the exchange markets ! The EURO exchange rate must be protected but it could be costly.
Angela Merkel and all the Leaders of the EUROZONE will be calculating the cost of all the measures which must be imposed on Italy if it remains in the EUROZONE !
They will also want to modify operating principles to ensure Italy again becomes profitable ! Changing or creating new EU principles for EUROZONE necessities could create problems.
Could Italy "EXIT" the EUROZONE or even the EU ? Everyone will consider that possibility : but it is complex, the cost is huge, and the time needed is very long !
Comparably, the "little BREXIT" is dead easy !
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