Original article by Robert Gottliebsen
The Australian – Page: Online : 13-Mar-20
Italy is facing financial collapse, and this could mean an end to the euro. Of all the nations that adopted the euro, Italy has suffered the most from doing so. Under the lira, its ‘business model’ relied on regular devaluations of its currency. However, once it adopted the euro, it no longer had this option. It needed to increase its productivity to compete with other Eurozone nations, but this did not occur. The coronavirus means that Italy’s tourist industry is at risk of collapse, and its debt-to-GDP ratios could increase to more than 150 per cent by the end of 2020.