- How Italian Crisis May Trigger Domino Effect Leading to Collapse of EU
The Italian political crisis could provoke a domino effect across Europe, which could potentially result in the collapse of the Eurozone. The supposed snap elections in Italy have already dealt a blow to euro and global stocks. Meanwhile, the EU, France and Germany are seemingly trying to curtail the rise of Eurosceptic parties in Italy.
The Italian political crisis has given global markets the shivers prompting observers to cast doubt on the future of the European bloc. The Italians are facing snap elections, which will be held on July 29, since President Sergio Mattarella has rejected the formation of a coalition government, proposed by the Lega Nord party and the Five Star Movement (M5S), which secured the majority of votes in the March 4 elections.
The political uncertainty in Rome immediately affected stock markets around the globe, which plummeted on May 29 as investors demanded higher yields for Italy’s government debt. Meanwhile, Italy’s benchmark stock index plunged, as did the euro.