Euro debt crisis looms again as Italians defy EU austerity demands
February 26, 2013
In an earthquake result, the Five Star protest movement of comedian Beppe Grillo looked likely to emerge as the biggest single party in the lower house. The scourge of bankers and corrupt elites, Mr Grillo has campaigned for a return to the lira and a restructuring of Italy’s €1.9 trillion (£1.64 trillion) public debt.
The conservative bloc of ex-premier Silvio Berlusconi looked poised to win the senate, coming back from the political grave with vows to rip up the EU’s austerity plans and push through tax cuts to pull Italy out of deep slump.
“The majority of Italians have clearly voted against the Brussels consensus. That is a damning indictment,” said Mats Persson from Open Europe.
It is unclear whether the European Central Bank (ECB) can continue to stand behind the Italian debt market under its Outright Monetary Transactions (OMT) scheme if there is no party able to deliver on austerity cuts and reforms demanded by Berlin and Brussels.