Euro break point Italy

The assessment that EMU will not survive in the long term is gaining in importance. A dangerous break for the euro lies in the irreconcilable differences between Germany and Italy.

For Germany, compliance with agreed rules was and is the basic condition for participation in the Monetary Union. But Italy is economically and politically incapable of adhering to the rules that are essentially shaped by German ideas.

In order to obtain the euro, Germany would have to renounce fixed rules for EMU and be prepared to adapt the monetary constitution to the needs of EMU members in distress. Alternatively, Italy would have to "reinvent itself" and in future be in a position to operate successfully in a regulated euro area. Neither is likely.

Please note: This study is available in German only