Thursday, 18 July 2013

Italian collapse rapidly approaching?

Italian voters have long been fed up with their corrupt parties pigging-out on public money; in 1993 a referendum motion to end party funding was passed, only to have been completely ignored by the politicians. Recent events prompted the shaky Italian Cabinet (desperate for some populist legitimacy if lacking any such democratic authority) - to propose an actual phasing-out of funding by 2017, starting with a reduction in this July's instalment. Unsurprisingly, yesterday only Beppe Grillo's 5-Star party and Bossi's Lega Nord voted for the measure - it was defeated by all the other parties voting together. It won't, however, last for long. 

Anyone following Hatfield Girl's painful accounts of the failure of the Italian economy - and the virtual bread rationing was for me one of the most telling indicators - will realise that the crisis is deep and real. A recent piece from the LSE puts the contraction as worse on just about every measure than the 1929 - 1934 collapse, and predicts 'The collapse of the Italian state finances is rapidly approaching. It will have an enormous impact on the Eurozone and the European Union'. Ambrose in the Telegraph has been saying so now for months.

Even my nephew, a studious mediaevalist spending the Summer in Chiantishire with no desire to notice anything after the fourteenth century, has been unable to neglect the malfeasances of bankers, panderers, frauds and politicians in Italian life today for those confined to the bolgia. (in translation only for me, but my valued 1976 edition with the translation by Dorothy L Sayers remains the best)

Timing-wise, an Italian collapse around October would suit me, with the € back to 1.25 or so.


right_writes said...

I wonder what is special about 2017 Raedwald?

The crooks that run the various parts of Yerp, always seem to suggest that a perceived wrong, will be righted in 2017...

Gelato Pizza said...

You must surely be mistaken Mr R.

Why only yesterday the Italian PM assured us all that everything was quite tickety-boo.

The quicker the euro is buried once and for all, along with all the crooks and spivs in Brussels, the quicker Europe will get back on its feet

Smoking Scot said...

Oh dear, and the Germans go to the polls on 22 September.

There's a slim chance that you might see 1.30 by October.

Anonymous said...

Italy has been corrupt for generations.
The "others" are not far behind, and this country is catching-up fast.
The vast majority of the Italian population couldn't care less, they are too busy avoiding tax by any means.
Oh, and the UK blood transfusion service has been sold to a US venture capital company. £200 million. As long as they pay me for the blood for now on....

BrianSJ said...

The failure of the Chinese wheat harvest ain't going to help either.