Italy might need a Greece-style bailout within six months. That’s the warning from Italy’s second largest bank, MedioBanca, according to a report in Britain’s Daily Telegraph:
“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.
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