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Opinion
Maria Tadeo

Don’t Fear Italexit. It Won’t Happen.

Rome’s next government has plenty of challenges. Leaving the euro isn’t one of them.

EU And G20 Virtually Convene At Global Health Summit With International Organisations
Photographer: Antonio Masiello/Getty Images Europe

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.