This is going to mean there will be increasing pressure on Italy as its debts become unsustainable. If they still had the lire, they would devalue the currency relative to Germany in the usual Italian way. Instead, they are the loose cannon inside the hard money euro area.
If Italy becomes Greece on a large scale and the euro fails, things are going to get bloody.
They really should create a soft-money Catholic euro and a hard-money Protestant one. I think it is the only solution with any real hope. Either that, or return to national currencies.
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