Italy on the Brink of a Devastating Crisis

02.12.2016 • Central Banks

By Julien Backhaus – Wealth-Protection-Up-T0-Date (Germany) –

You have already heard of a referendum in Italy on Sunday. It is about a total of 46 constitutional changes that the people should wave through. The vote is necessary from the point of view of the government to make Italy more governable.

No government after 1945 has been in power for more than five years. It was quite different from ours in Germany, where the Chancellors Kohl, Schröder, and now Merkel, held on to the government for a long time. In addition, in Austria the new deadline election takes place around the next president. The position itself in fact insignificant, yet could win the “right” candidate.

In fact, the reigning Prime Minister Matteo Renzi is in danger of a spectacular defeat in this referendum. This would not only be bad for him and his government team but would put Italy in an almost unsolvable situation. The crisis is spreading.

First of all, he himself has made the choice to vote on himself. It was only in the summer that he corrected an earlier announcement that he would resign if the referendum against him would fail. Nevertheless, he has already put himself in the pillory with his original announcement.

The election on Sunday becomes a protest. Currently, the polls are unfavorable, the election could actually lead to a severe defeat. This will change Europe, and will be a major event for your assets.

Italy is already in a severe economic and banking crisis. Debt rises much faster than in the other countries of the euro zone. Most recently, Renzi begged that the country should continue to be at a low interest rate due to the purchase of euro bonds by the European Central Bank.

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