Italy scares markets and Europe, again, with new calls to leave the euro
(Worthy News) – The Italian government is creating further turmoil in financial markets on Tuesday morning, after new comments that Rome would be better outside of the euro zone.
Claudio Borghi, who leads the economic policy of the ruling Lega party, cast doubt over Italy’s membership of the single currency on national radio Tuesday. “I am truly convinced that Italy would solve most of its problems if it had its own currency,” Borghi said in a radio interview, Reuters reported.
Markets have kept their focus on Italy as the new populist government prepares it first budget. There are concerns that increased public spending will derail the reduction of public debt — which amounts to about 2.3 trillion euros ($2.6 trillion).
The coalition government in Rome is formed by two euroskeptic, anti-establishment parties. Borghi’s comments on Italy’s membership of the euro zone are not the first to come out of the right-wing Lega party. It has made similar comments in favor of leaving the euro zone before the election in March, but it toned down the rhetoric on the controversial issue as the vote approached. [ Source: CNBC (Read More…) ]