Listen: Italy, Europe, Daniel Gross discussed on Marketplace with Kai Ryssdal
"Ziprecruiter, the smartest way to hire. This is marketplace, I'm KAI Ryssdal. There was a lot going on on Wall Street. Today's I was talking about up at the top of the program. One thing that I didn't mention Europe and a little thing that got a whole lot of airtime here. A couple of years ago the euro zone debt crisis. This time the Italian edition Italy's in a nasty spat with its partners in the common currency, the aforementioned euro-zone over public debt. Italy owes more as a percentage of its entire economy than any other country in the euro zone except Greece which is not exactly bragging rights at least got till tomorrow to cut its planned budget deficit or face billions of euros in potential fines as marketplace's Stephen beard reports. Now from the European desk. The battle lines drawn the European Commission demands that Italy comply with the blocks budget rules and cut its plan deficit Rome's response as Daniel gross of the CPS think tank in Brussels has been blunt to the point of rudeness says to handle with a rolls via spent more because we are sovereign government. We do what you want on the face of it, though, the commission holds the better hand next month quantitative easing bond purchases by the European central. Bank comes to an end of that says macho Alexandrovich of Jeffries bag could further weaken Italian government thumbs. When key comes to an end, something talion bones to become exposed to the factor. A lot less support coming from from the east to be. So so that is a concern already. It sagging bond prices mean that Italy has to pay three percent mole to borrow than Germany if that figure hits full percent. The Italian finance minister has admitted his government will be in trouble. Daniel grow says, they'd be begging the EU for a bailout, and you can imagine what the Commissioner of of saving. Sorry can't help. You caught yourself into trouble. We won't use have all the time. So you're on your own right now. Don't you believe it says pita clip of open Europe in Brussels in that situation Italy would likely deploy the Samson option and say to his e you told menta's do one do resume. Issue. Don't want it to collapse you have to pay up. It's Lee has the third largest economy in the euro zone. And the wolves full biggest bond market, these conflict could be messy says Neal sharing of capital economics is perfectly possible that this could precipitate euro crisis at some point over the coming months, and and quotas potentially fall bigger than the Greek crisis nearly a decade ago. But this is the EU the next step is more likely to be kicking the can down the road in London. I'm Stephen bid for marketplace.."