The Euro zone must help Italy - Natixis

Analysts at Natixis argue that the Eurozone must help the sluggish Italian economy, while a failure to do so will see Italy’s relative impoverishment leading to a severe political crisis.

Key Quotes:

“Italy’s economy is in a serious state: productivity and competitiveness handicaps, market share losses; destruction of production capacity, underinvestment; zero potential growth, borrower defaults, banking crisis.”

“Italy’s relative impoverishment may lead to a severe political crisis, the arrival to power of an anti-European party or an exit from the euro.”

“So the euro zone must help Italy. But how?”

“By financing the recapitalisation of its banks and a bad bank to pool non-performing loans;

By continuing the Juncker Plan, obviously;

By allowing the Italian government to increase public investment and efficient public spending and lower the corporate tax burden.”

AG Markets Review