“Investors consider Italy to be the worst in the eurozone and the short-term outlook for the country and its banks is more like a nightmare than a good dream”
The very severe judgment on the state of health of our economy comes from the deputy editor of the Financial Times, Patrick Jenkinsin an editorial in which he describes the three weaknesses of the Italian system in coping with the disturbances created by the war in Ukraine.
“After the strong recovery recorded last year, theItalian economy it was already threatening to return to its usual anemic levels, even without the war in Ukraine and despite the nearly 200 billion euro fund for recovery from the EU, “writes Jenkins.
The second problem highlighted is thehigh debtwhich last year was al 151% of GDPhas triggered investors’ fear of a “fragmentation” of the integrity of the euro block while the ECB tries to “tighten the strings of the stock exchange and the states widen them” to limit the damage caused by the rise in energy to consumers.
Finally, Jenkins writes that “Italian banks can become part of the problem” because they are more exposed than others to the conflict in Ukraine and to the negative sentiment of the markets regarding the country’s public debt.
The only bright spot, according to the Financial Times, is Mario Draghi, which given its credibility “is a source of stability in the Italian political system”. But if he leaves his post as prime minister, the British paper notes, investors will have “further reasons to look negatively at the prospects” of Italy and its banks, concludes Jenkins.
The weekly L’Espresso does not think the same way, which in the newsstand issue sports a cover with a portrait of Draghi (signed by the illustrator of Propaganda Live, Makkox) and the effective title “RePparmi”. In the main piece, Vittorio Malagutti explains how the “Draghi effect” is no longer enough: “The spell was broken on Thursday, June 9, when the president Christine Lagarde announced the change of course of the ECB “.
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