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“The people vs. finance”: Europe needs a new strategy to counter Italian populists
Rather than Italy leaving the euro, it’s now that the euros are leaving Italy. In the recent weeks, after doubts emerged about the government’s will to remain in the European monetary union, Italians have transferred dozens of billions of euros across the borders. Only a few days after the formation of the new government, the financial situation almost slid out of control. Italy’s liabilities with the euro-area (as tracked by the Target2 payment system) rose by 39 billion euros to a record 465 billion euros in May, largely reflecting capital flight. Swiss monetary authorities detected money flows from across ... (full story)