A crunch point is approaching in the ongoing saga surrounding the highly-indebted Italian economy. This could spark a revival of the dormant euro crisis.
Italy’s public debt stands at a staggering €2.3tn, or 132 percent of GDP: the third largest in the world after Japan and Greece. Furthermore, Italy’s banks hold the largest share of Europe's non-performing loans, totalling €224bn. Unlike Greece, which is a relatively small player in Europe, Italy has the third-largest economy in the Eurozone, contributing more than 15 percent of its overall GDP. Italy has now become a huge risk to the financial stability of the whole of the European Union.
Three months after the 4th March Italian elections, the new government of the Five Stars Movement and the League (formerly Northern league) has finally been sworn in by by the President of the Republic and a whole new situation opens up where these parties will be put to the test. This experience will prove to be a necessary experience in exposing in the eyes of the Italian working class the real nature, particularly of the Five Stars Movement and prepare the ground for a new wave of class struggle.