3rd largest public debt, Italy’s a risk of contagion

Summing up History quickly, Greece has been a leading nation till Rome let’s say Italy took up the torch. The same story, although far less significant for the human kind, may be happening in the banking sector. The 680 Italian banks or so are currently in a consolidation process, said the Italian government with a view to reassuring investors and creditors after the crash in the banking sector stocks’ valuation and the growing risk of collapse in front of up to €360 billion of bad debt, 22% of national GDP.

To address the “serious situation” a Eurozone-backed “bad bank is actually unlikely to see the light because EU regulation forbids Italy to take over the debts,” explained strategist and financial planner Maurizio Giuliani. Despite not being the 3rd largest economy in the world, Italy holds the 3rd largest public debt and with a current rating at BBB-, “Italy is just a step away from being suspended from the ECB’s OMT program and therefore at risk of falling into the hands of the Troika,” Giuliani pointed out. The situation is serious, and according to Torino-based Giuliani, “there are presently no prospects of resolving it.”