Italian minister of labor suggesting withdrawal from euro

Discussion in 'Wall St. News' started by Copernicus, Jun 3, 2005.

  1. euroland under pressure? i dont think so, but some rifts seem to have surfaced lately.
  2. that's ridiculous ! it's not going change anything. I would understand if these comments were coming from outside the EU
    well I guess it had to come from Italy
  3. Key-word: "euro-sceptical"

    So this guy belongs to a "nationalistic" political party. In my opinion, Italy's PM should have ask for this guys resignation asap, but I guess Berlusconi has his hands full dealing with his own problems.

    Basically, what (some) Eurozone politicians are asking for, is the ability to inflate their way out of the path of fiscal restraint.

    Maybe someone from Italy can comment further.
  4. Gepard


    If politicians should act conforming to the will of their electors, Maroni just had the courage to say just what a lot of people is thinking (Marosi said that a referendum only, a people vote, should decide on the issue).

    How many?

    Difficult to say. One of the more respected newspaper in Italy says today in its frontpage that 60% are against the idea to come back to the old lira.

    So, maybe 40% are favourable, not so few.

    Only weeks ago you could read France people was for sure, 60%, going to vote pro Europe. It seems they changed fast their minds...
  5. izeickl


    While I do think the Euro is too blame in part for some EU countries problems, I think its also being used as a scape goat for major government incompetence. Added that it was introduced just as the .com bubble bursts and the USD starts to fall just fuel the problems.
    A lot of people are just using the recent NO votes too promote their wider anti-eu statements but I dont think much will change in the long run. Theres too many weasels getting fat off the land.
  6. Hmmmm. Here in Ireland (a Euro member) unemployment is only 4.2% - the lowest in the EU and lower than the UK which is outside the common currency. Next is Luxembourg at 4.6% again lower than Britain. So the problem in the French, German and Italy isnt the Euro.

    It is lack of structural reform, lack of competition, militant trade unions and high taxes - including 58% top rate of income tax in Germany and 55% corporate tax rate.

    I think the Northern League (the smallest of 4 parties in the Italian Government and whose leader Umberto Bossi once described the EU as "the Soviet Union of the West" is planning a petition to try to force a referendum on leaving the Euro.

    Under Italy's direct democracy law (brought in in 1970), you must first get a petition with 500,000 signatures. Next you go to the Constitution Court for permission to have the referendum. But the Court has blocked 63 out of 127 petitions in the past, and has ruled that referendums blocking the ratification of treaties are inadmissible. Now the Euro is part of the Maastricht Treaty 1992 (it includes the British and Danish opt-outs from the currency), so it is possible the court would block a referendum on the grounds that is relates to provisions of an international treaty.

    In any case, there are rules on the holding of a referendum designed to frustrate petitioners. For example, the petition cannot be deposited with the Constitutional Court in the year leading up to an Italian election, or during the six months after the election. Also, the referendum must be held in April. Effectively, since the next election is in Spring 2006, this means the earliest a referendum could be held is April 2007, and who knows what the economic outlook will be by then.

    BTW , on the poll showing 60% of Italians wanting to stay in the Euro, I don't think 40% said they want to leave it. I have read that 27% want to pull out.

    Which newspaper said the 60% thing? Id appreciate a link.
  7. bring back the lira

    bring back italian government bond futures
  8. Gepard


    "So the problem in the French, German and Italy isnt the Euro"

    I do not want to argue regarding French and German, but for a lot of people, a lot, in Italy, the reason was the lire/euro rate of 1936, accepted by the leftist/communist Prodi for political reasons, regardless it was enough fair or not (many are thinking ratio should have been 1500 at least).

    "Which newspaper said the 60% thing? Id appreciate a link"