Italy’s Renzi must bring back the lira to end depression – Telegraph

European flag outside the Commission

European flag outside the Commission (Photo credit: Wikipedia)

This is an important read from Ambrose Evans-Pritchard  in the Telegraph. Check it out!

via Italy’s Renzi must bring back the lira to end depression – Telegraph.

Personally, I am still not convinced that Italy needs to break from the Euro.

For me, the solution is clear. The troika of the IMF, the ECB and the European Commission need to get real and focus on investment rather than austerity. Further, Angela Merkel’s government need to support Keynesian stimulus in Southern Europe.

The alternative of breakaway from the Euro offers catastrophic risks for the whole of the EU.


4 responses

  1. John, what an excellent idea that Italy should concentrate on producing and exporting exquisite creations – for which she is second to none. A fortune waiting to be made!

    How can her government be galvanized into action?

  2. Dr Alf makes a good point.

    The Lire is not really a viable currency if Italy is to function properly within the Eurozone and it was not really a currency anyone else was interested in before Italy joined the EU.

    Renzi is a man who “talks a good fight ” but has yet to deliver anything.

    Things are now so bad that a limited amount of pump priming from the ECB is needed to lift Italy and the moribund excuse for an economy which Renzi is presiding over.

    A lift from the Vatican which has the second biggest gold reserves in the world might also help.

    After that Italy has to restructure its economy, clear out the excessive corruption and slowness of decision making and then start to really focus on making,and exporting original luxury goods and expensive motor cars to the new wealthy around the world, particularly in China, India and parts of the Middle East, South Korea and Singapore.

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