European Economics

European Economics Focus

24 May, 2018

Will Italy’s new government cause a crisis?

The policies of the two parties likely to form Italy’s next government have understandably caused concern. In the near term, we actually think that they would provide a modest boost to the economy. But they are likely to worsen the economy’s long-run economic problems. And there is clearly eurosceptic sentiment bubbling under the surface in both parties that could eventually boil over.

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