Italy’s political turmoil could hit the continent harder than the Greek financial crisis and the Brexit vote, according to the finance minister of Latvia.
A week of political turbulence in Italy saw dramatic repricing of the country’s assets and has triggered fears of market contagion across the entirety of Europe.
Asked during a panel discussion in Paris Wednesday if the recent market activity could eventually impact growth, Latvian minister Dana Reizniece-Ozola was unequivocal.
“Definitely,” she said. “I think we can see what an impact Brexit has already caused to the EU in general, and if Italy fails to form a government that might be still pro-European and still dedicated to the reforms and getting the country back within the fiscal stance, that might be a bigger harm to the whole of Europe.”