Italy To Default?
The Centre for Economics and Business Research (‘CEBR’) remains pessimistic on the prospects of survival of the Euro. Writing today, 4th August, the chief executive Douglas McWilliams identifies Italy as being at risk of default: its tight budget is not tight enough. He compares the risks of default in Portugal, Ireland, Greece & Spain but sees Italy is being at greatest risk as its ‘anaemic’ growth will prevent it from reducing the debt to GDP ratio. Italy is a much bigger economy than Portugal, Ireland or Greece so that a bailout by other members of the Eurozone is unlikely to be affordable. Read the full article here.