Italexit (Italeave) Definition

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What is Italexit (Italeave)?

Italexit is a portmanteau of “Italy” and “exit” is the Italian version of Brexit where the EU’s third largest economy would potentially leave the European Union (EU). It can also go through the Italeave alternative coat rack (“Italy” and “leave”).

Key points to remember

  • Italexit, or Italeave, is the term given to the possibility for Italy to leave the EU, much like the UK’s Brexit.
  • At the forefront of Italexit is the Five Star Movement, launched in 2009.
  • The feeling of leaving, whether it is Italexit or another “-out”, is often linked to a loss of sovereignty to the benefit of the EU and to high financial contributions which fuel extremist thinking.

Understanding Italexit

Each country in the European Union has a specific set of political interests which depend on the country’s circumstances and its unique history and culture, as well as the values ​​and ideologies of extremist parties on either side of the political aisle. . The prospect of Italy’s exit from the EU intensified throughout the spring of 2018, as the national elections in March of the same year were inconclusive, leaving the country essentially without a government in power.

At the forefront of Italexit is the so-called Five Star Movement, launched in 2009. The Five Star Movement is the second most popular party in Italy behind the Democratic Party. The five-star movement was already gaining momentum before Brexit, as the party won local elections, electing Virginia Raggi and Chiara Appendino respectively mayors of Rome and Turin. While the turnout was relatively low, the vote serves as an indication of the state of Italian politics.

During the last weekend of May 2018, Italian President Sergio Mattarella appointed former IMF official Carlo Cottarelli as interim prime minister until new elections in early 2019. As Italian president, Mattarella has the power to appoint the head of the Italian government and his ministers. . He appointed Cottarelli after refusing to accept the appointment of Paolo Savona as finance minister. Savona represents the Five Star Movement, which pushed Italy to separate from the EU. This created an impasse which was resolved by the formation of a coalition which saw the current Prime Minister, Giuseppe Conte, come to power in June 2018.

Motivation to leave

Prior to the formation of the coalition between the Five Start Movement and the League, Italian political developments rocked world markets as the prospect of a weakened EU was rekindled. The threat of Italy defaulting on nearly $ 2.7 trillion in debt, which would have had a huge impact on other countries, banks and institutional investors, was at the center of concerns.

All over Europe, nationalist political parties have clung to the idea of ​​leaving the European Union. The feeling of leaving is often linked to a loss of sovereignty to the benefit of the EU government in Brussels, high financial contributions to the Union and specific problems which may vary from country to country, for example example immigration and health care.

While the majority of academics and mainstream politicians tend to advocate for the European Union, the Brexit vote has prompted nationalist parties to step up their efforts to separate from the EU. Other countries with extremist parties that have recognized their own versions of the possibility of leaving the EU are Greece (Grexit), France (Frexit) and the Czech Republic (Czech-out).

Italexit Economic consequences

The immediate consequences of the Brexit vote in 2016 were not favorable to either the UK or the EU. Global stock markets plunged. The UK’s credit rating was quickly downgraded by the three major credit bureaus: Standard and Poor’s, Moody’s and Fitch, and the pound sterling (GBP) hit its lowest exchange rate since 1985. David Cameron, who was then Prime Minister and who opposed Brexit, announced that he would step down and was replaced by Theresa May. Similar political and economic turmoil can be expected if, and when, Italexit comes to fruition.


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