Advertisement
Published in:
2020 | OriginalPaper | Chapter
7. Summertime Blues in Italy
Author : Dr. Olli Rehn
Published in: Walking the Highwire
Publisher: Springer International Publishing
Activate our intelligent search to find suitable subject content or patents.
Select sections of text to find matching patents with Artificial Intelligence. powered by
Select sections of text to find additional relevant content using AI-assisted search. powered by
Abstract
Those who said there would be no contagion effect from Greece and Ireland were proven wrong latest in the summer of 2011. Contagion was in full steam in July 2011. The uncertainty surrounding Greece, obstacles to the Portuguese programme, Italy’s stalling reforms and the crumbling credibility of the bank stress tests amplified the distrust that drew Italy and Spain towards the edge of the cliff. The debt crisis had turned to a euro crisis—it was a truly systemic crisis that would require an equally matching systemic response. The recovery turned weaker over the summer, and it was further weakened by the premature rate hikes of 2011 by the ECB to show its rigour.