Published On: Tue, Aug 20th, 2019

Italy on the brink: Expert warns Italy may consider ‘Italexit’ to prevent EU bail out | World | News

Chief European economist for Mizuho International Christel Aranda-Hassel argued that an “Italexit” shouldn’t be ruled out as a solution to Italy’s crisis. The stagnant growth over recent years and struggling youth employment have left politicians to make difficult decisions on how to resolve the problem. Ms Aranda-Hassel told the BBC: “Growth is very much stagnant at the moment.

“It is very tricky but the fact is politicians have not yet endorsed structural reforms.

“This is a very big Italian problem, no one embracing the structural reforms that need to be done to get this country up and going.”

The BBC host agreed and added that this had been an issue for generations while reflecting on Italy’s populist parties in power.

He then questioned what is going on in the minds of voters as a potential general election looms.

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Ms Aranda-Hassel replied: “Quite frankly I do think there is a sense of fatigue.

“Absolutely everybody has been forever promising that they will repair Italy.

“Now it is the populists and yet again nothing much has happened.

“You will continue having this north-south divide if that isn’t eventually addressed with a totally different set of reforms in my view.”

Mr Enright replied: “You compare this with the Greek crisis everybody thought Greece leaving the European Union was unthinkable.

“Europe does give you leeway if there is a recession in terms of using the fiscal priming yet again.”

The BBC Business Live host then questioned whether Italy could soon be in need of rescuing from the EU in the future.

Ms Aranda-Hassel close day saying: “I do think that you can’t fully exclude it.

“But at the same time don’t forget that most of the Italian debt is in the hands of Italians.

“Therefore it will be them who shoot themselves in the foot if they do an Italexit.”

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