Monday, July 4, 2016

Another Ripple in the EU


For John, BLUFThis is not going to end well.  Nothing to see here; just move along.



Writing for The Financial Times, we have Ms Rachel Sanderson in Rome and Mr Alex Barker in Brussels. "Renzi" would be the Italian Prime Minister Matteo Renzi.  There have been some 56 Prime Ministers since the Kingdom was abolished in 1946.  Granted, some, like Aldo Moro (twice before being murdered and Giulio Andreotti (three times) and Silvio Berlusconi (three times) inflate the number.

Here is the lede on this article, plus one paragraph additional:

Italy is prepared to defy the EU and unilaterally pump billions of euros into its troubled banking system if it comes under severe systemic distress, a last-resort move that would smash through the bloc’s nascent regime for handling ailing banks.

Matteo Renzi, the Italian prime minister, is determined to intervene with public funds if necessary despite warnings from Brussels and Berlin over the need to respect rules that make creditors rather than taxpayers fund bank rescues, according to several officials and bankers familiar with their plans.

Here is the point.  It isn't just the Brits who are unhappy with the EU.  This is a major act of defiance on the part of one of the PIIGS. And saying this is all because of the Brexit vote is to miss the underlying problems.  Sort of like the way the elites think about what is happening in the 2016 Presidential Campaign.

Regards  —  Cliff

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