Italy’s Professor Rinaldi Warns of Eurozone Collapse in Sputnik Interview
April 11, 2019 (EIRNS)—Prof. Antonio Maria Rinaldi, Italian economist who is rumored to be a Lega candidate for the European Parliament elections, was interviewed by Sputnik Italy on March 31, and an English translation run by Sputnik International today was reproduced in China Daily under the headline “Real Challenge: Will Italy Leave the Eurozone or Will the Eurozone Fall Apart?”
“According to the professor, if Europeans succeed in changing the bloc’s financial system through democratic means and national economies are again brought into focus instead of vested interests of multinational corporations, then the situation will take a favorable turn.
“ ‘If this does not happen, then Italy will find itself in acute crisis and will be forced to leave the Eurozone,’ he suggested....
“ ‘The euro system is based on price stability, near-panic control over inflation, the strict financial accountability of governments and a balanced budget, which is regarded as a prerequisite for economic growth.’
“For its part, Italy was used to a different model, which was largely influenced by Keynesianism and allowed the government to interfere in the country’s economy, the academic noted.
“ ‘In the EU, any assistance from the state is prohibited,’ Rinaldi highlighted. ‘Therefore, we can no longer count on the state to correct the situation; the government can no longer intervene to fix a problem. The euro system rules are used as a “stick” for those countries that do not comply with them, and Italians know this perfectly well....’
“ ‘It is necessary that countries once again have the opportunity to adjust their economies,’ he opined. ‘Now it is impossible. This is really a problem. No one dares say that we are moving in the wrong direction.’
“The professor did not rule out that the Eurozone may one day collapse if the European national elites fail to find a way to correct the euro system. At the same time, he presumed that there should be a mechanism allowing the EU member states to pull out of the Eurozone in a coordinated fashion....”
Professor Rinaldi was among the 217 prominent signers on a petition crafted by MoviSol (the LaRouche movement in Italy) for reinstatement of Glass-Steagall banking separation, which petition was brought last November to U.S. Congress members by Member of the European Parliament Marco Zanni, the Lega party’s foreign policy spokesman. Signers also include members of Italy’s Conte government.