Plans by the Italian government for a deficit of 2.4 % instead of pursuing the adjustment path agreed with the EU have led to a sharp increase in the yields on Italian debt, with the yields on ten-year bonds rising above 3%. Italy seems to be only one step away from such an explosive feedback loop.
Gianni Toniolo analyzes the phase Europe and its citizens are going through with historical lucidity and economic competence. Leaders are needed that are capable of employing political capital in order to convince Italians that the road to their future is only through a stronger, more united and solidary Europe