Italy has now a new government

Plan B for Paolo Savona's withdrawal from the euro is expected to be more difficult to implement since 2015 due to significantly higher "withdrawal costs", which reduces the likelihood that the new Italian government will intentionally and directly seek to withdraw from the euro.

Instead, it could be tempted to introduce a parallel currency to the euro, but this could lead to "crashing out" of the euro. Since there is no orderly withdrawal procedure from the euro, the danger of a disorderly break-up of the euro zone increases. The individual euro countries should have emergency and transition scenarios in their drawers.

Please note: This study is available in German only.

Download study as PDF (Reading time ca. 15 min)