Having swum against the tide of increased optimism towards the euro-zone for some months, we are wary of the temptation to leap on last week’s events in Italy as a vindication of our position. After all, political turmoil is hardly novel in Italy nor, increasingly, in other parts of the euro-zone. Nonetheless, the episode has both provided a further reminder that austerity alone cannot solve the currency union’s problems and perhaps exposed some cracks in the logic and design of the euro-zone’s primary crisis resolution mechanism.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services