Trouble in the eurozone: New Italian government puts pressure on establishment
Italy's new government has vowed to spend on the poor and also finance tax cuts. Those spending plans have the eurozone establishment worried. Will Rome blow up the budget deficit and trigger a sovereign debt default? That's the doomsday scenario some analysts have put forward. We ask two MEPs for their predictions.
"I don’t really think it will happen," says German MEP Bernd Lucke, "but I think the government will use the scenario of a sovereign default as an instrument to trigger financial transfers from the rest of the eurozone. They will put this up as a threat."
Italian MEP Roberto Gualtieri counters: "If this government goes for that kind of blackmail, it would be a disaster for our country; so I think the most likely scenario is that they will not be able to implement any of those policies."
Produced by Isabelle Romero and Roxane Runel
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