According to economists, the pandemic led slowing down is going to hit the European Union in unprecedented ways. The biggest cause would be the “unsustainable” debt burdens of several member-state countries that could spell the end of the bloc.
Low interest rates, tighter budgets, a bit of inflation, and make sure that the economy grows so that the debt becomes sustainable.
There are rumors over Italy wishing to exit from the bloc. It is Italy which is likely to cause the biggest problems according to British economists Roger Bootle who has also said that Italy is facing a bigger economic crisis.
Initially, when Italy had decided to become a part of the European Union, they were actually looking at an easy way to escape from their own mis-governance. Somehow, they now feel confidence of running their own show. Strange, an Italian public poll says that two-thirds of the Italian population feels that they are better off being a part of the EU. According to another poll conducted by a leading British news agency, the popularity of the European Union has fallen post the pandemic.
The discussion over a much desired exit from the bloc, started in mid April this year. It seems almost 40 percent Italians were dissatisfied over the treatment of the bloc towards Italy, in the midst of the pandemic. They wish to not only exit the European Union but the eurozone as well.
There are reasons for the dissatisfaction. Undeniably, the EU failed to act collectively at the moment when countries like Italy badly needed a display of togetherness. Suddenly, everyone was fending for themselves. Within the EU, countries started imposing their own restrictions, had their own border controls in place, and banned the export of much-needed medical supplies.
Unfortunately, Italy seemed to have found an ally that send speedier help. It was China that seemed to come to their rescue that the EU partners, and, not surprisingly, that has left a sour taste. Opposition to the EU in Italy has never been higher.
Conspiracy theory says that China’s might have purposely engineered the widespread pandemic as its economy seems to be recovering much faster than any other nation. But the fissures between Italy and the rest of the bloc seems to have become evident.
Ursula von der Leyen, the president of the European commission’s heartfelt apology isn’t doing damage control. Looking at Italy’s weak public finance, most EU members continued to deny debt mobilization. Whether Italy will exit and will it bring the EU dream of remaining united, is something till will tell.