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Italy’s Dance of Debt.
The steps towards a European crisis have become a deadly dance.
Italy’s new leaders won power promising to confront and beat off the EU bureaucrats in Brussels over manageing the nation’s extreme levels of debt. They offered more free handouts to their already unperforming people at home. Now they need to show success in negotiating EU agreement to their deficit budget.
But their unwiling dance partners in Brussels cannot let Ithem get away with too much – that would stir outrage from the many otther precariously indebted countries within the EU with their own poverty and lack of growth.
Brussels has to hold tough but cannot allow Italy to fail.
Billions of Italian debt come due in the next few years and the E Bank has determined to lend no more.
So the dance goes on.
Who will buy the debt when it comes due? What will be the interest rate required from what is essentially a non performing debtor country? and what will be the ramifications if some of the most storied and interlinked banks in the world can no longer meet their obligations?
The dance is a deadly one, already the dancers have no clothes – as Churchill might have said Europe “keeps buggering on”.
Have a good day, James