European Union Under (Internal) Threats
Recently we raised the question as to whether the present Eurozone can survive. Clearly the UK's leaving will remove one of the major funding countries within the EC. When Greece blew up, Angela Merkel was successful in persuading Europe to socialising the debts of Greece in exchange for far more fiscal austerity.
But Italy's problems are of a different magnitude altogether. Italy has formed a government which has no fiscal discipline whatsoever. John J. Xenakis explains why:
Italy’s plummeting financial markets have mostly recovered and appear to be stabilized as the “populist” government that had appeared to collapse early in the week came to power, though with a different cabinet of ministers.
The “populist” coalition is between the left-wing Five Star Movement (M5S), led by Luigi Di Maio, and the right-wing La Lega (The (Northern) League), led by Matteo Salvini. Although the two parties differ on many issues and distrust each other greatly, they decided to form a coalition based on their shared anti-euro, anti-EU, and anti-immigrant policies, and particularly on the fact that they have no fiscal discipline whatsoever.
