First it was Greece, now it is Italy which finds itself staring down the barrel of a gun. So far, Prime Minister Silvio Berlusconi’s promise to quit, after tough economic reforms have been implemented, has done nothing to calm the markets. Quite the contrary – the yield on Italian bonds has reached breaking point.
It is a story Greece’s out-going prime minister George Papandreou knows well. Once the borrowing costs on Athens’ enormous public debt reached seven percent it was forced to go cap in hand to the EU and IMF for a bailout. The austerity demanded in exchange for being rescued and the resulting social fallout in Greece has become all too familiar.
For Europe’s elite, the very scenario which they have spent so long, and so many summits desperately trying to avoid, now appears to be taking place, rocking the very fabric of the whole European project itself.
To discuss Italy, Greece and the euro zone’s debt woes more generally, euronews’ Rudolf Herbert spoke with Professor Hans-Werner Sinn. A leading German economist and head of the prestigious Munich based Ifo Institute for Economic Research, Sinn insisted the only way to save Greece is for it to leave the euro. To see the full interview, click on the link above.