
ITALY is the nation most likely to leave the eurozone as debt-ridden Rome continues to grapple with European Union finance chiefs over its spending, according to three analysts who spoke to Express.co.uk.
Rome has been locked in a bitter battle with Brussels over its controversial budget plans, with the latest action seeing the European Commission threaten disciplinary proceedings unless Italian debt can be reigned in. The Commission has urged Rome to make its debt more sustainable by cutting its structural deficit. Debt in Italy now stands at 132 percent, and is the second largest in the eurozone after Greece. The Commission forecast this figure will rise further to 135 percent next year.
Its structural deficit, which should have decreased by 0.6 percentage points this year under EU fiscal rules, is instead projected to worsen by 0.2 percentage points.
Speaking to Express.co.uk, three analysts chose Italy when asked which country was most likely to ditch the euro.
Michael Brown, senior markets analyst at Caxton FX, described the country’s heavily eurosceptic coalition government – made up of the anti-establishment Five Star Movement and right-wing Lega – as appearing to be “on a collision course” with the EU.
As well as the ongoing budget dispute, he said Italy appeared more likely to leave the euro area than anyone else after a proposal to create mini-BOTs, a parallel currency to run alongside the euro and be used by the government to finance its debt obligations.
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