{"id":10387,"date":"2018-06-04T10:53:38","date_gmt":"2018-06-04T09:53:38","guid":{"rendered":"https:\/\/www.worldpolicyconference.com\/?p=10387"},"modified":"2018-07-25T10:42:13","modified_gmt":"2018-07-25T09:42:13","slug":"negotiations-in-italy-push-euro-to-fore-the-last-place-europe-wants-it","status":"publish","type":"post","link":"https:\/\/www.worldpolicyconference.com\/fr\/negotiations-in-italy-push-euro-to-fore-the-last-place-europe-wants-it\/","title":{"rendered":"Negotiations in Italy Push Euro to Fore, the Last Place Europe Wants It"},"content":{"rendered":"
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May 29, 2018<\/p>\n

Steven Erlanger, The New York Times<\/p>\n

LISBON \u2014 Through more than two months of tough negotiations to form a government in Italy after inconclusive March elections, global financial markets remained relatively calm. Italy\u2019s uncertainties seemed contained to Italy, and Europe\u2019s economy kept growing.<\/p>\n

That changed this week when Italy\u2019s president, Sergio Mattarella, effectively blocked two populist parties from forming a government. He judged that a crucial member of their proposed cabinet was intent on having Italy abandon the euro, though they had not explicitly campaigned on that issue.<\/p>\n

In doing so, Mr. Mattarella may have laid the groundwork for a new election, one that amounts to a referendum on the euro. The European Union and financial markets reacted with dread. On Tuesday,\u00a0the Dow plunged almost 400 points<\/a>, the value of the euro plummeted and the cost of borrowing for Italy shot up.<\/p>\n

For the European Union, another Italian election would be terrifically bad timing.<\/p>\n

Chancellor Angela Merkel of Germany, a linchpin of the bloc, is weakened; she needed six months to form a government after a rough election of her own last year that was marked by a far-right, populist surge.\u00a0Spain\u2019s government could face a no-confidence vote<\/a>\u00a0as early as this week and possible new elections as well.<\/p>\n<\/div>\n