The economic weakness in Europe redoubles the threat to the common currency. Italy’s setback in particular threatens the euro zone in two ways: (1) Because Italy is the zone’s third largest economy, failure there would place unsupportable burdens on Germany as it tries to sustain union; and (2) the bad news could impede Prime Minister Matteo Renzi’s crucial reform agenda and thus deprive Italy — and, by extension, the rest of Europe’s troubled periphery — of the only route to economic efficiency, growth, and the fundamental ability to meet financial obligations. A declaration of defeat for the common …read more
Source: The Huffington Post
