Research Briefing | Italy Leaving the euro will not solve Italy’s problems

Leaving the euro is not going to solve Italy’s economic problems, despite what the populist Five Star Movement is telling voters. We would argue that it’s not a lack of price competitiveness that is weighing on growth, but a deeply entrenched confluence of structural problems: high public debt, low productivity, political clientelism and a dysfunctional banking system. While none of these are caused by the euro, leaving the single currency would exacerbate them. READ MORE