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What Italy’s Referendum Means for Europe
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What Italy’s Referendum Means for Europe

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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Italy’s economy plunged into fresh uncertainty after voters on Sunday rejected a pro-reforms platform pushed by Prime Minister Matteo Renzi. The country’s banking system is in deep trouble with eight big banks nursing huge bad loans, and the referendum has diminished hopes of them getting recapitalized and saved. Italy’s economy has seen little growth over the past two decades, and with Renzi’s market-friendly policies now voted out, prospects of fresh investments, from both domestic and foreign sources, have also dimmed. The repercussions will be felt across Europe, particularly in the stability of the euro and efforts at economic integration across the continent, experts say. Italy’s referendum vote is widely seen as a negative sign in the context of rising populist sentiment against immigration and globalization in Europe. Similar views contributed to Donald Trump’s being elected president in the U.S. and the Brexit vote in June that made way for the U.K. to leave the European Union.…

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