The dramatic increase of Turkey’s insolvency risk on the international markets and the possible collapse of its national currency (the Turkish lira) are the results of the country’s profound economic and financial difficulties and are bringing to ruin its banking sector, its payment system and its institutional setting. The Turkish crisis is an important warning for Italy. Unlike countries such as Argentina, Italy’s risk of direct contagion is limited even with respect to the financial aspects. The more significant risk concerns the indirect contagion related to Italy’s vulnerability in a market that is extremely volatile.

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