|Carlo Cottarelli, Interim-PM, arrives at Palazzo del Quirinale, Rome, May 29, 2018|
Crisis looms large over the eurozone yet again. And this time it’s swirling around Italy. If Cyprus was a tropical storm for the euro in 2013 and Greece a hurricane in 2015 what will Italy turn out to be in 2018?
Italy’s public debt is 132% of GDP. This is the second highest in the euro area (Greece is still out in front with 180.8%). In absolute terms, however, Italy’s public debt at €2.3 trillion dwarfs Greece’s €320 billion. Meanwhile, the eurozone’s third-largest economy contains a rising tide of populist, anti-EU sentiment.