New elections do not solve Italy's euro problem

President Sergio Mattarella seems to see the danger of a withdrawal of the euro from Italy as very real. Otherwise he could have appointed Paolo Savona and let the formation of the Lega and five-star government run its course.

The recently negotiated government programme of the Lega and five-star government is likely to be adopted even after new elections in the autumn. According to current election polls, both parties are asserting themselves and could even make gains. A coalition of Lega and five-star will be a coalition of increased public spending and public debt. 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.

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