Sunday, January 1, 2017

Ifo chief Fuest, Italy’s exit from the Euro Zone, Handelsblatt fears

Clemens Fuest

The head of Ifo, a fear that Italy might leave the Euro Zone.

(photo: Reuters)

BerlinIfo chief Clemens Fuest fears that Italy could be a long-term exit from the Euro-Zone. “The level of prosperity in Italy, is at the level of 2000. If nothing changes, by the Italians at some point: We want this Euro-Zone is not more,” said Fuest of the “Tagesspiegel” (Monday edition), according to the preliminary report.

problems there would be, in his view, even if Italy should submit an application to the rescue of the EMS. “With his consent to a bailout program for Italy, the Bundestag would not burden the taxpayers of the risks, the amount of which he knows and can’t control,” said Fuest.

Bank (ECB) has announced that The European Central for the case of a bailout program for Italy, to purchase unlimited quantities of Italian government bonds. Behind the ECB, the taxpayer, however, on the national Central banks. “So you would leave the ECB, the decision about how much credit Germany Italy granted,” said Fuest. “Under these conditions, the Bundestag is expected to approve the ESM programme.”

Even without a withdrawal of Italy, the Economist looks at the development in Europe is critical. “The European Union is drifting apart increasingly, he said. “It’s already become the Brexit vote. But in the meantime, countries of Europe, to dissociate even in the East more and more. This is dangerous, what Europe needs now is stability."


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