Home Italian opposition warns about a default and riots in
Forex News Today: Daily Trading News

Italian opposition warns about a default and riots in

Gianroberto Casaleggio, the co-founder Beppe Grillo’s 5 Star Movement sounded the alarms in a recent interview.  Casaleggio said that autumn will see economic shock, riots and social unrest.

In the interview with  Gianluigi Nuzzi, the leader also drew scenarios, and in one of them he talked about a civil war and a reinterpretation of the constitution. He said that there are limits on the internet in Italy.

The M5S became the single biggest party (not coalition). The deadlock in the elections led to a political stalemate and after a few months, the mainstream center-left PD party formed a coalition with the mainstream center-right PDL party. Enrico Letta is the prime minister but his coalition is somewhat fragile, as PDL leader Silvio Berlusconi could find himself behind bars.

However, in recent opinion polls, the M5S party fell from its big achievement in the February elections.

These strong warnings by  Casaleggio join warnings of an Italian bankruptcy by the party’s leader Grillo. He already called for a referendum on Italy’s membership in the euro-zone, an “Italeave”.

At the moment, the mainstream media is laughing out loud at the doomsday scenarios. Italians are known for their theatrical, sometimes over dramatic style, but is the scenario so far from reality?

Italy has a debt-to-GDP ratio of over 120% – more than Greece’s 2020 target. The economy has been squeezing quite rapidly in recent years, and there seems to be no light at the end of the tunnel.

In addition, it seems that German politicians are trying not to “rock the boat” in the euro-zone before the September 22nd general elections in the euro-zone’s locomotive. Can all hell break loose after the German elections?

Further reading:  Worsening Eurozone debt levels could see September Euro sell-off

Thanks to reader  Marco Garbuglia  for the information  here  on the  Forex Crunch Facebook page.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.