Courtesy of Mish.
Anti-euro sentiment in Italy is already very strong and about to get stronger. Eurointellihence has come interesting comments today regarding Italy.
The demonstrations and protests [in Spain] are very likely now to spread to Italy. The country’s largest union, CGIL, said there would be a public-sector strike in September to oppose the Italian government latest austerity plan, Il Fatto Quotidiano reports.
According to Susanna Camusso, CGIL head, its union will launch “a general strike of the public sector against the umpteenth measure.” The cuts, to avert a 2% increase in VAT scheduled for September, include a 10% reduction of staff and 20% reduction of managers of public-sector.
The complete package, result of the spending review conducted by Mario Monti, will save over €26bn until 2014. The measure, which will go before the Parliament at the end of July, was approved by the cabinet two weeks ago.
Eurozone Exit Sentiment in Italy
In regards to factors that might lead to a eurozone exit, there are two major differences between Italy and Spain.
The first difference is anti-euro sentiment in Italy is already at a convincing threshold. Please see Six Reasons Why Italy May Exit the Euro Before Spain
Here is a pertinent chart.
The net difference between those who think the euro is a good thing minus those who think it is a bad things is -4 percentage points in Spain, but -14 points in Italy. That is the biggest negative spread in the eurozone.
Elections – Mario Monti Gone in 2013
The second difference between Italy and Spain is in regards to elections.
Italian prime minister Mario Monti will be gone no later than general elections in 2013. In contrast, Spanish prime minister Mariano Rajoy is not scheduled to face general elections until 2015….
