, Columnist
Don’t Fear Italexit. It Won’t Happen.
Rome’s next government has plenty of challenges. Leaving the euro isn’t one of them.
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There's a lot of things to worry about in the wake of another government collapse in Rome — but, please, let's expunge Italexit from the list for good.
The concept is a familiar one for investors: At a moment of political stress, Italy could crash out of the euro and return to the old lira as a result of bad government decisions, be it by design or accident. If Italexit were to manifest — or even approach reality — it would trigger an unprecedented crisis for both the single currency and the Italian economy. Except it won't happen.