Eurozone finance ministers have dismissed suggestions that Italy might adopt another currency. They rejected talk of an euro break-up as ‘absurd’ and described suggestions that the Italian lira could be brought back as ‘stupidities’.
Dutch finance minister Gerrit Zalm said he did not think it was a serious option for Italy to leave the eurozone, “it would be far too costly in terms of interest rates”. “The euro is always safe, no doubt”, added the Spanish finance minister Pedro Soles. Italy faces potential disciplinary action from the EU over its failure to comply with the European Growth and Stability Pact’s target for budget deficits. It has long been calling for an interest-rate cut and some of the other EU countries in breach of their deficit targets may seek looser financial policies. Many of Europe’s finance ministers are thought to be looking for reforms that would help them counter recent opposition to the proposed new EU constitution.
