“I think that any relationship between ‘Grexit’ and Italy is out of place,” said Pier Carlo Padoan, using the parlance for a Greek exit from the currency zone while speaking on the sidelines of the Ambrosetti conference on Lake Como. “Italy has significantly strengthened its position. Italy is gaining a lot of confidence in the markets.”
Greece and its European partners are in the middle of tough negotiations over the conditions Greece must meet in order to secure billions more in bailout money. Without those funds, Greece is at high risk of having to put capital controls in place, which would significantly raise the likelihood that the country would leave the 19-member currency union.
New Greek Finance Minister Yanis Varoufakis has repeatedly told reporters, hedge fund managers, and anyone else who will listen that if Greece were to leave the Euro, the markets would start to price in the risk of Italy leaving the currency zone as well.
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