Is Italy headed for a Greece-style bailout?
Oxfam volunteers wearing caricature heads depicting (L-R) German Chancellor Angela Merkel, Italian Prime Minister Enrico Letta, British Prime Minister David Cameron and Russia's President Vladimir Putin pose in golf clothing on June 18, 2013 in Enniskillen, Northern Ireland.
“Time is running out fast,” said Mediobanca’s top analyst, Antonio Guglielmi, in a confidential client note. “The Italian macro situation has not improved over the last quarter, rather the contrary. Some 160 large corporates in Italy are now in special crisis administration.”
The report warned that Italy will “inevitably end up in an EU bail-out request” over the next six months, unless it can count on low borrowing costs and a broader recovery.
The difference between Italy and Greece? Italy is the 8th largest economy in the world, whereas Greece comes in at number 35.
Simon Tilford, at the Centre for European Reform in London, joins Marketplace Morning Report host David Brancaccio to discuss. Click on the audio player above to hear more.