Italy- 2019 challenge

Italy, one of the EU pillars, is famous by nice music, nice food, nice clouting.

This EU pillar is also famous by history, which some small part is: Roman impair, The Borgias era, Mussolini and WW2, etc.

Of course, this not so strong (at the moment) pillar is also famous by football,   Berlusconi and yes, economic problem.

For good majority of people Italy have two major problems-

Political situation & Economy

The political turbulence drove Italian bond yields to their highest since the eurozone debt crisis more than half a decade ago.

Rome did reached agreement with Brussels on its budget deficit, but investors are wary of assuming that the market will remain calm in 2019.

Current ruling coalition in Italy are Five Star Movement and North League.

The five-star movement are independently came to elections and won 32.7% (222 seats), while the League for the North was on the joint list with Berlusconi’s center of the right center of Forza Italia and the Italian Right (Fratelli d Italia ) Giorgio Meloni (Giorgia Meloni). This right coalition won 37% of the votes, or a total of 263 seats, of which 73 seats for the Northern League (17.4%), 59 seats for Forza Italia (14%) and 21 seats for the Italian Brothers (4.3%).

This almost revolutionary movement and rise of political marginals, opened a new chapter in Italian political life, so now we have speaking about “Third Republic”.

Graphic display

Blue – Right Center Coalition,

Yellow – Movement 5 Star,

Red – Democratic Party

The 5-star movement managed to getter a large number of activists throughout Italy, mostly among the middle and lower layers of the poorer South Italy population, who felt completely forgotten by the left center parties that traditionally focused on more social issues.

The Northern League for Mate Mateo Salvini (Matteo Salvini) gathered the rich and high class of Italians, northern and central regions in Italy (Lombardy, Veneto, Friuli, Pjemonta, Liguria, etc.) with the slogan “Prima gli Italiani”- Italians first-


Italy is the third largest economy in the eurozone, and after Greece, has the highest debt in Europe.

Economists agree that the risk of its debt becoming unsustainable is a threat for all Eurozone, with France which is the most exposed to collateral damage.

French banks have a lot off this debt, so if something goes wrong on the Italian economy (or in economy or in the debt), that can truly hurt France.

Italy have around EUR226bn debt, which she must to sell to market.

Also, this year Italy need to refinance EUR176bn in bonds.

Let`s mention and that average funding costs in Italy are near all time low, and Italy`s main economy engine are small and medium-sized enterprises in the north and northeast (regions such as Veneto – the capital of Venice, Friuli Venezia Giulia – the capital of Trieste, Lombardi – the capital of Milan).

Now, this Italy`s 2019 challenge have one standing point: If Italian economy weakens or political tensions rise, investors’ nerves may fray`s.