ITALIAN REFERENDUM: THE AFTERMATH by Concetto La Malfa  

Italy may have just opened the door for Le Pen in France and may contribute to the end of the Euro.
Matteo Renzi thought the Italians would vote YES for the constitutional reforms he had proposed, but just like Cameron with Brexit, he must be regretting the whole thing by now.
His political opposition, M5s, the Northern League  and Forza Italia will now press for early elections and if they come out strengthened from them, they will press for a Referendum on getting out of the Euro.
In the meantime in the next French presidential elections there is a good chance that Marine Le Pen is elected and she definitely will want to live the Euro. If both things happen, it will really be good-by to the Euro!
All this is not short of a full-blown insurrection which might break not only the Euro by European cohesion as well.
Italy, the third largest economy in Europe, and one of the founder states of the EEC, is now experiencing  more or less the same problems experienced  by Greece, Spain and Portugal. Eighteen percent  of the total loans made by Italian banks are toxically non performing while registering  low levels of capital. To salvage them some €40bn may be needed.
Monte Paschi di Siena, the third largest lender in Italy, will be bailed out in a few days time by the government. This might be the last act performed by  Renzi before a new provisional government is appointed.

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