Re: And The Next Bail-Out Looms
Italian PM Matteo Renzi to resign in wake of referendum defeat
http://news.sky.com/story/italian-pm...efeat-10683879
Well , Italy has voted 'NO' and so I guess they will be rolling a few dice in the near future and deciding which way they go
Italy is poised to become next country to reject the establishment
http://dailym.ai/2gDZQhZ
Upcoming vote is on prime minister Matteo Renzi's proposed reforms
Early polls suggest he is losing the vote by 11% in some areas of Italy
Lack of support is being seen as a failure to reach out to the poor
Rejection would follow Brexit and Trump in shunning political status quo
Italy is poised to become the next country to reject the establishment as exit polls suggest a referendum protest vote is poised to beat the government.
Early indications point to the vote on prime minister Matteo Renzi's reforms being thrown out.
A shock poll by Demos in the week predicted an 11 percentage point margin in the south of the country, according to a Demos poll.
The vote could prompt an exit from the European Union and rejection would follow results in the Brexit referendum and the U.S. presidency race in citizens turning their back on the political status quo.
Italy referendum: PM Matteo Renzi resigns after clear referendum defeat
http://www.bbc.co.uk/news/world-europe-38204189
The No campaign in Italy has been spearheaded by the anti-establishment Five Star Movement, led by Beppe Grillo.
It wants a referendum on whether Italy should keep the euro.
The projections, if they are right, will give a boost to populist parties, including the Five Star Movement and the anti-immigrant Northern League.
The referendum comes in the wake of the Brexit vote in the UK in June, and coincides with the rise of the anti-immigrant Front National in France and populist parties elsewhere. It also comes less than a month after the election of Donald Trump in the United States.
Some 50 million Italians have the right to vote in the referendum - many voters are fed up with years of economic stagnation
Polls suggest a strong lead in favour of “No”. Investors are worried that potential uncertainty following Renzi’s defeat could damage the integrity of the euro area, bringing back not-so-distant dark memories of the 2011 sovereign debt crisis.
Crucially, investors have become increasingly worried about Italy’s weak banking sector, which is swamped by non-performing loans. These are loans that have not made scheduled payments for at least 90 days and are difficult, if not impossible, to collect.
In January 2016, Renzi reached an agreement with the European Commission on how to address Italy’s €360 billion bad loans problem. The deal involves a guarantee scheme backed by the Italian state and the use of private investors to purchase those non-performing loans.
If Renzi’s government collapses, it would call into question this guarantee scheme, deterring investors from recapitalising troubled banks. And should the recapitalisation and bad debt restructuring of the especially afflicted Monte dei Paschi di Siena bank fail, it could lead to a broader loss of market confidence in Italy’s banking system. This could trigger a series of bank failures.
Referendum fails: Italy leaves the euro?
If Renzi steps down, the decision to call a snap election or appoint a caretaker technocratic government rests with the President of the Republic, Sergio Mattarella. There is little political appetite for yet another government that does not reflect electoral preference. Since Silvio Berlusconi resigned in 2011, Italy has experienced three “unelected” governments.
And so demands for fresh elections are on the rise. Renzi’s defeat would provide political leverage to the populist, anti-establishment and eurosceptic Five Star Movement, which has become one of Italy’s most popular parties since it was founded in 2009.
The Five Star Movement recently launched a campaign to hold a referendum on the euro. There could not be an immediate break from the single currency, however, as Italian law does not allow referendums to repeal international treaties. Further, as demonstrated by the Brexit vote, the legal hurdles implied in a divorce from EU treaties would make the process of leaving the single currency a lengthy and complex exercise.