Italy could destroy the euro zone if it leaves the EU following the monetary tightening of the ECB | World | News

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And he insisted that Italy “will have to prepare to face a new situation, in which it will no longer be possible to count on the external support of monetary leverage”.

But Mr Vegas also warned that the country could now prepare to exit the eurozone if the ECB tightens its purse strings.

And he claimed that an “Italexit would be a shock for the whole euro zone, and it would endanger its survival”.

The number one of the Commission stressed that any project to leave the Brussels bloc “would jeopardize the stability, the proper functioning of the financial system and the safeguard of the market, objectives which fall within the institutional CONSOB”.

He added: “The announcement of a return to a national currency would cause institutional investors to immediately outflow capital which would seriously jeopardize Italy’s ability to refinance the world’s third largest public debt”.

In March, the chief economist of the European Central Bank warned Italy and France that their economic problems would not be solved by the breakup of the single currency.

Peter Praet said: “What worries me is the populist narrative that things were better before the euro.

“It’s a decoy. We arrived at monetary union after disastrous experiences with floating exchange rates and a few failed attempts at an orderly float.

“The devaluations that populists claim are a free lunch and miraculously regain competitiveness have proven extremely costly.”

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