Wednesday 22 February 2017

Seamus Coffey: Italy could trigger a euro break-up if EU leaders don't catch up with markets

Seamus Coffey

Published 09/11/2011 | 11:48

Mario Draghi, new President of the European Central Bank. Photo: Getty Images
Mario Draghi, new President of the European Central Bank. Photo: Getty Images

THE eurozone debt crisis has gone from a slow-moving wreck that was being dragged out over two years to moving at breakneck pace in only a few days. Italian 10-year sovereign bonds yields have broken through the key 7pc benchmark. This is the level at which Greece, Ireland and Portugal were forced to seek assistance from an EU/IMF bailout. Italy is not in the same category as the original PIGs ... and the difference is one of scale.

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At the end of 2010 Greece, Ireland and Portugal had a total government debt of €640 billion. On its own Italy had a debt of €1,840 billion or €1.8 trillion.

Italy is too big to bail.

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