Tatiana Dementieva
At this point, the state of affairs in the Italian financial system leaves much to be desired. To be more specific, it may eventually result in a Eurozone crash, the gloomiest forecasts say.
According to the recent research conducted by the International Monetary Fund, Italian banks are now facing major challenges related to an increasing amount of bad loans coupled with low profitability. For now, the total debt of Italian banks has already exceeded 360 billion euros, which is roughly 25% of the Italian GDP.
Amid all of that, the rating of the Italian Prime Minister Matteo Renzi is going down fast. It has already plunged a lot. Moreover, he may well have to resign his post if he fails to talk the ECB and the IMF into making financial injection in the Italian banking sector to support it and prevent it from crashing.
Some opponent of the Premier say that he is fully responsible for the current situation in the local banking sector. They say that this banking crisis didn’t happen overnight and emerged a long time ago. They say, it’s all about excessive political pressure coupled with inefficient reforms. All of that resulted in separating investment and commercial banks as well as multiple violations and crimes against investors, while the criminals happened to avoid punishment.
They say that any further steps aimed at saving the day for Italian banks at the expense of Italian taxpayers and depositors without guaranteeing any payoff is a bad decision leading to higher distrust of Italians to national and European institutions and threatening the integrity of the Eurozone.
They say that Matteo Renzi positions himself as the leader of the local left-wing power but in reality he hasn’t done anything to cut unemployment, to eliminate the existing inequality as well as to improve the economic figures.
That’s the key reason why his Democratic party is losing its rating rapidly these days. On top of that, the so-called 5-star Movement is getting more popular these days. It is interesting to note that the mentioned movement is determined to quit the Eurozone.
Tatiana Dementieva
