Italy faces 'horrible martyrdom' while in the eurozone

Telegraph UK ^ | May 20, 2005 | Ambrose Evans-Pritchard

[a freedom-loving italian]

Italy faces 'horrible martyrdom' while in the eurozone

Italy is in much the same mess as Argentina in the last throes of its disastrous dollar-peg and faces a "horrible martyrdom" as long as it remains inside the eurozone, according to a market report issued yesterday.

Banque AIG, the financial wing of the US insurance giant, said Italy needed a 20pc devaluation to prevent a slump and a "horrendous" explosion of public debt.

[a freedom-loving italian]

Dear FRiends, I have always been an eurosceptic, I have always thought that the idea of a single currency for 15+ different economies is utter nonsense, but this really beats my worst expectations.

In less than 3 years the introduction of the Euro in Italy has brought about an economic recession (see http://www.freerepublic.com/focus/f-news/1403695/posts) and now a looming financial crises.

But worst of all there is one fact: living in Italy has become simply impossible for most of the middle class because of the Euro, as prices have sky-rocketed while wages have not. Now even US expats can no longer afford to live here: http://www.usatoday.com/news/world/2005-05-09-italy-expats_x.htm

So SCREW THE EURO AND MR PRODI!!

[billorites]

I spent several weeks in Italy over New Years.

Hung out near Milan and in Florence.

The Italians are hurting because the Euro, and the currency unification, has left them enjoying a lower standard of living than they are accustomed to.

Lot's of unhappy Italian campers over there!

[John Lenin]

[Brilliant]

You wonder why the Europeans still support the EU.

[speedy]

Bring back the lira and Italian prosperity!!

[oceanview]

can cheaper Ferraris be far behind?

[Sidebar Moderator]

Please use the original title. Thanks.

[Betaille]

What would the process be for withdrawing from the Euro?

[shaggy eel]

You wonder why the Europeans still support the EU.

,,, Africa to the south, the Soviet States to the north. There's always America... oh, hold on a minute, calls are coming in fast.

[a freedom-loving italian]

Ditto!!

[shaggy eel]

,,, Italy's one of the stars on this flag. Which one? That's how simple it is for her to withdraw from the EU. A range of complex treaties interlock it with all the neighbouring tribes. It would be a leper if it even mumbled about it.

[glm]

While trying to return home from Rome, there was a work slowdown at British Airways -- the Italian airline clerk explained the problem-- He made approximately $2500 [value stated in US dollars} a month before the euro and was forced to accept the now $1250 [US dollars] salary after the euro. They were told to just eat the drop in pay. As a result the baggage checkers would routinely just stop working. For some reason the Italians don't like us any longer.

Glad we got there 3 hours early (as suggested by our hotel manager).

[rmmcdaniell]

Public debt is 105pc of GDP, and rising fast. Some $192billion of debt is due in 2005. The "spread" between Italian and German bonds has edged up over recent weeks, but there is no sign of real concern.

I don't know why everyone on this thread is blaming the euro. Clearly, the problem is socialist governments that can't control spending....and now can longer just print money to pay for it.

[a freedom-loving italian]

That's the tricky point: there is no process from withdrawing, but only economic sanctions for countries which do not respect the 3% cap for gov't deficit and other financial requirements.

[expatpat]

Italy is one of the few EU countries with a conservative government.

[shaggy eel]

,,, it's also got one of the lowest birthrates in the world, if not the lowest. They'd better get busy with a bit of procreation so they can square off that debt.

[a freedom-loving italian]

For some reason the Italians don't like us any longer.

Don't know what you are talking about, we have one of the most pro-US government in Europe. Of course we also have our fair share of US-hater commies, but it's the same the world over...

[a freedom-loving italian]

Clearly, the problem is socialist governments that can't control spending...

Clearly the problem is the nutty idea of "one-currency-fits-for-all". The Euro is unfit for Italy, we want back our Lira.

[glm]

Don't know what you are talking about, we have one of the most pro-US government in Europe. Of course we also have our fair share of US-hater commies, but it's the same the world over... I had expected Rome to be the most friendly of places on our Med. Cruise last September. Other than the taxi driver that drove over 100 miles per hour we did not find anyone that was pro-America but maybe something had happened that ticked everyone off about America. I loved Italy and plan to return one day. Our stay was only 4 days and I would love to go to Florence. I will return to Rome because I threw a coin in the Trevi Fountain. 8) gayle

[expatpat]

Contraception, abortion, and 'free love' have done it in for the Euros. Once upon a time, a man ended up with children as Nature's fee for the man getting his rocks off. Now he can get his rocks off without children. But Nature will get its revenge.....