Italy Faces Internal Political Hurdles Before Achieving Recovery

Maroni, a senior member and former leader of the opposition right-wing party Northern League, said the proposals were not enough on their own. “I think that he is doing maybe the right things but in the wrong way. He wants to reform the labor market but…it only works if you have economic growth. That is the way you can create new jobs, not simply changing the laws.”

“We’re in a moment when economic growth is far away from coming to Italy,” he added. “Before making these reforms you need to boost economic growth and that’s not what Matteo Renzi is doing now.”

Perhaps not surprisingly for a former leader of the anti-euro, anti-immigration Northern League party, Maroni said that if Brussels did not give Italy flexibility around its fiscal target in order for Italy to return to growth, the country “should leave the European Union.” “It’s not possible to stay if this is against our interests,” he said.

Maroni resigned from the party leadership in late 2013 to concentrate on his presidency of the Lombardy region, a position he won in the national election in 2013.

The region is known for its agricultural, manufacturing and clothing industries, producing many of the “Made in Italy” brands exported globally that have helped to make the region among the wealthiest in Italy, according to Eurostat data.

Maroni said that contrary to a lack of competitiveness seen elsewhere in the Italian economy, Lombardy was thriving.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza