Italy’s Unions Not Buying the Full Monti

While the FT reports Italy’s new technocratic government has approved tough austerity measures and economic reforms, the country’s unions seem to be balking at the tough medicine.  Italy needs lots of deflation relative to other countries to become competitive and doesn’t have the ability to adjust relative prices through the exchange rate without an independent currency.      The real test, which will be political and drawn out, is about to begin.

(click here if video is not observable)

This entry was posted in Black Swan Watch, Euro, PIIGS, Politics and tagged , , . Bookmark the permalink.

1 Response to Italy’s Unions Not Buying the Full Monti

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