Italian crisis 'could suggest the end of the Euro' says economist Vicky Pryce

'If there is a problem with Italy, it would suggest the end of the Euro as we know it,' says Chief Economic Advisor

Matteo Renzi

Monday, December 5, 2016

A leading economic advisor has warned “if there is a problem with Italy, it would suggest the end of the Euro as we know it" in the wake of the weekend's referendum.

Italian Prime Minister Matteo Renzi resigned this morning after losing a key referendum on changing the country's constitution and parliamentary system.

Fifty nine percent of the Italian electorate voted against the proposed reforms, and Renzi subsequently said that his "experience in government ends here".

The decision has sparked a degree of uncertainty which could further undermine the European Union and the Euro, as Italy is one of the largest economies in the Eurozone.

Vicky Pryce, chief economic adviser at the Centre for Economic Research, said that while this vote wasn't anti-establisment, she was surprised the Italian people voted against a man who has confronted the EU on several occasions.

She claimed the vote was an indicator of "the huge dissatisfaction with the status quo in terms of growth and where Europe is going", which "the EU and other countries will have to take note of" because “if there is a problem with Italy, it would suggest the end of the Euro as we know it.”

Listen to the interview above.