tag:blogger.com,1999:blog-36227136.post7039929867559450147..comments2024-01-16T08:40:53.682+00:00Comments on <a href="http://www.openeurope.org.uk">Open Europe</a>: Italy’s Five Star movement isn’t funny for MontiOEhttp://www.blogger.com/profile/00556463374230498875noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-36227136.post-70481813678350086652012-06-22T21:21:30.467+01:002012-06-22T21:21:30.467+01:00Italy cannot survive in the Euro, and neither can ...Italy cannot survive in the Euro, and neither can anyone else in the long run. All the bailouts so far fail to do anything about promoting growth. They cannot do anything about growth because they cannot address the fundamental problem of competitiveness. Italy and Spain are never going to be competitive with Germany in a single currency. The only solution is for the Euro to break up. That's why EU leaders cannot talk about competitiveness. The markets will force them to eventually, but they can keep their precious project going for a long time yet, because they care more about the Euro than they do about their own people.Ken Worthyhttp://www.democracymovementsurrey.co.uknoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-75919367183325924732012-06-15T11:51:19.477+01:002012-06-15T11:51:19.477+01:00Rik
All this is true. Which is why they cannot sur...Rik<br />All this is true. Which is why they cannot survive in the Euro. Do you think Monti will make them efficient? young? honest? tax-paying?Rollohttps://www.blogger.com/profile/18255460090580758354noreply@blogger.comtag:blogger.com,1999:blog-36227136.post-34772983812020531312012-06-14T12:38:03.178+01:002012-06-14T12:38:03.178+01:00@Rollo
The Euro is not the only problem Italy has...@Rollo <br />The Euro is not the only problem Italy has, they have a lot of them:<br />-inefficient, expensive and corrupt government and apparatus;<br />-too much red tape;<br />-aging;<br />-too high taxes;<br />-education and language problem (for that level of GDP per capita);<br />-part of a potential Zombie continent;<br />-too high wages;<br />-too high prices;<br />-too high sovereign debt;<br />-bad tax collection.<br />Simply big time uncompetitive.Riknoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-86268748158079061702012-06-14T12:33:29.627+01:002012-06-14T12:33:29.627+01:00The problem for Monti is imho that he is probably ...The problem for Monti is imho that he is probably the only PM in the EZ who has a proper oversight of the whole picture. <br />The staff both the EUs as well as that of the most important countries are making one miss after another. They donot oversee the financial implications of things and even on the legal front they make one mistake after another. So the EZs leaders are as well not able to rely on their advisors.<br /><br />Seeing the above it is probably a good idea to have Monti involved more on a European level.<br /><br />At home. I basically donot think it has become so bad enough that the populus finally will realise that there are very difficult times ahead. There is simply not enough political support to get the necessary measures through. <br />In Italy they will now start to hit the population and as I see it these first have to get used to austerity, before the country will be ready for the measures that are really necessary (and as a consequence real austerity).<br /><br />Get realistic look at the measures uptil now they are in no way enough to compensate for a 20-30% uncompetitiveness gap. And this for a country Italy that had marginal growth and if corrected for overborrowing simply negative growth for the last decade (use a simple multiplier).<br /><br />Monti should pay attention at what happens at home, but his (effectively anybody else's as well, if we would see another PM in Italy) margins look to me very small.Riknoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-26379908031762176812012-06-14T11:49:31.795+01:002012-06-14T11:49:31.795+01:00Why should anyone in Italy want to keep themselves...Why should anyone in Italy want to keep themselves in the Euro? It is Euro membership that has driven them into the mess.Rollohttps://www.blogger.com/profile/18255460090580758354noreply@blogger.comtag:blogger.com,1999:blog-36227136.post-50725055613555255752012-06-14T11:49:28.340+01:002012-06-14T11:49:28.340+01:00Why should anyone in Italy want to keep themselves...Why should anyone in Italy want to keep themselves in the Euro? It is Euro membership that has driven them into the mess.Rollohttps://www.blogger.com/profile/18255460090580758354noreply@blogger.com