Policy Briefs

C. Bastasin: The German’s government’s strategy for the euro area in view of Italy’s instability

In a period of three months, ever since “Plan B” for exiting the euro was unveiled by economists close to the current government, the Italian spread has doubled. In recent weeks the government’s leading representatives have been speculating that Italy may run into financial turbulence. Should it happen, it will be essential for Italy to have cooperative relations with partner countries with which it shares vital decisions in the institutions that safeguard the euro area’s financial stability.

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