Italy braces for referendum that risks Brexit-style consequences

Michael Collins

Italy is holding a referendum on December 4 on proposals to reduce the power of the Senate. Prime Minister Matteo Renzi, however, has made the vote about him, by threatening to resign if “no” wins. The anti-establishment Five Star Movement, which heads the “no” forces, has pledged to keep the 41-year-old prime minister to his word – and polls show the referendum heading for a narrow defeat. The danger for investors is that the eurozone's third-largest economy, which has sick public finances, a crisis-prone political system, weak institutions, a stalled and inefficient economy and a wobbly banking system, could face political upheaval within weeks. If Renzi departs David Cameron-style after a lost referendum, Italy could be beset by similar political turmoil to that unleashed in the UK when the Brexit vote succeeded. (VIEW LINK)

Michael Collins
Michael Collins
Investment Commentator

Highly respected investment writer and media manager with more than 16 years experience in investment management.


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