8 Nov 2018
The Italian government’s plans to sharply hike spending leave it on a collision course with the EU. But financial markets, as well as Brussels, will determine whether the populists in Rome can deliver on their electoral pledges.
Italians and drama never seem too far apart. One could argue that drama is written into their history for operatic composer Giuseppe Verdi reflected, perhaps even shaped, the Italian struggle for unification known as Il Risorgimento.
The theatrical skills of Italy’s politicians have been displayed on countless occasions during the country’s often-turbulent history. Membership of the eurozone has simply complicated this already volatile political landscape. But the current drama involving the government’s planned budget, unveiled at the end of September and subsequently rejected by the European Commission on Tuesday (October 23), threatens to turn into a crisis that could engulf the eurozone.1