Will Brexit Change life For Europeans
Will Brexit Change life For Europeans: Most Likely Not
The German government expects the expansion of just 0.5% this year, down from 1.8% just a few months ago as manufacturing struggles with a number of challenges.
Now Dr Feld tells the BBC he is looking further afield, in particular to Italy.
The country is struggling to stay out of recession and grappling with higher government debt and a banking crisis – which Dr Feld thinks could leave it vulnerable.
The spending and tax spending plans of the Italian government there means its deficit and debt are ballooning and set to breach rules set by the European Commission, further undermining the country’s financial credibility.
The eurosceptic government has over £2 trillion worth of debts. Concerns about those could put further pressure on the financial system. Full Story
Will Brexit Change life For Europeans: Most Likely Not
“There is simply too much French and German political capital invested in this project they cannot let it fail – it would take an exogenous shock for it to go.”
He went on to claim the eurozone would be most likely to deteriorate should a country exit the European Union, with Mr Wilson suggesting Italy would be most likely to ditch the euro.
Italy has been at loggerheads with EU finance chiefs for months now, with latest movements seeing the European Commission threaten Rome with disciplinary proceedings over its €2.3trillion (£2trillion) debt, which stands at more than 1.3 times its economic output.
Mr Wilson also claimed Marine Le Pen – a vocal critic of the EU – rising to power in France with her National Front party could also cause unfixable damage to the eurozone economy
He said: “The eurozone could collapse if Italy left or if Le Pen won in France.”
This sentiment was shared by Michael Brown, senior markets analyst at Caxton FX, would said Italy, a nation who has the third biggest economy is the eurozone, leaving would be “fatal” for the euro area. Full Story
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