Nobody really thought Italy was part of the stronger economies in Europe but not many have predicted Italy would fail before Spain. The Financial Times is now saying just that. This would make the Greek/Ireland/Portugal problems look small. Financial Times:
Some analysts feel that Spain is the last bastion for the euro’s survival. We do not. We believe that the final battle will be fought on the picturesque shores of Italy, resulting in Rome’s emergence as either hero or villain with respect to the survival of the euro.
Most European politicians dearly want the “run” on several of its “club” members to end and its rescues to restore confidence.
This is, unfortunately, a dream that is likely to be shattered as the next domino – Spain – suffers the scrutiny of intense solvency analysis.
