Newsletter
Weather
Community
English home Forum Photo Gallery Features Newsletter Archive   About US Help Site Map
China
World
Opinion
Business
Sci-Edu
Culture/Life
Sports
Photos
 Services
- Newsletter
- Online Community
- China Biz Info
- News Archive
- Feedback
- Voices of Readers
- Weather Forecast
 RSS Feeds
- China 
- Business 
- World 
- Sci-Edu 
- Culture/Life 
- Sports 
- Photos 
- Most Popular 
- FM Briefings 
 Search
 About China
- China at a glance
- China in brief 2004
- Chinese history
- Constitution
- Laws & regulations
- CPC & state organs
- Ethnic minorities
- Selected Works of Deng Xiaoping
English websites of Chinese embassies




Home >> Business
UPDATED: 10:06, November 11, 2006
Italy may quit euro out of weak economy: German bank
font size    

Weak economy and dire prospects of economic reform could make Italy give up the euro currency, a key German bank said Friday in a report.

The costs for Italy to quit the euro single currency at present far outweigh any potential benefits from lower prices for the country's exports that a return to the lira would bring, said Commerzbank in its report to clients.

But the Romano Prodi government's slim majority means it is unlikely to pass any meaningful market economy reforms, the bank said.

"From the standpoint of politicians this will gradually raise the political benefits of leaving the single currency," it noted, adding "There is thus a small but not to be neglected probability that Italy will leave the currency union in the coming five years. "

Such a move would throw the entire 12-nation euro-zone into a " deep crisis" and politically isolate Italy for years to come, the bank said.

Foreign debts held in euros by both the state and private industry would rise sharply after an Italian devaluation, the report said, investors would avoid Italy and interest rates would climb.

It said that the core problem of Italy is its industrial sector which has become massively less competitive regarding prices since the launch of the single currency in 2002.

Source: Xinhua


Comments on the story Comment on the story Recommend to friends Tell a friend Print friendly Version Print friendly format Save to disk Save this


   Recommendation
- Text Version
- RSS Feeds
- China Forum
- Newsletter
- People's Comment
- Most Popular
 Related News
Dic

Manufacturers, Exporters, Wholesalers - Global trade starts here.
Versions:
Copyright by People's Daily Online, all rights reserved