Italy: At the Epicenter of Europe’s Debt and Immigration Crisis

In the months after Britain voted to leave the European Union last summer, some were concerned that a wave of anti-EU sentiment would build in other countries and cause the collapse of the block.

Nowhere was that more true than in Italy.20170226_t2

The country rejected a referendum on constitutional reforms that was widely seen as a vote against the establishment, and led to the resignation of Matteo Renzi, one of the country’s longest serving prime ministers in recent decades.

Those fears diminished after Renzi was swiftly replaced by a new technocratic government under former foreign minister, Paolo Gentiloni, and the rise of the Five Star Movement — a populist anti-EU movement seemingly slowed.

Now, however, Italy’s problems — both political and economic — are rearing their heads once again, and could be the trigger of the next major financial crisis, according to research from Deutsche Bank.

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