Italy boosts public sector pay ahead of PM Renzi's referendum

Matteo Renzi

Several other lenders also need a cash injection to stay afloat raising fears of a domino-effect crisis."Sunday's referendum on constitutional reform is Italy's Brexit moment and a "No" vote would send tremendous shockwaves through the markets and the banking system". Renzi, 41, also wants to wrest back power from Italy's 20 regional governments.

According to sources things are only about to get worse with numerous European nations having their main elections next year.

The country's financial sector is plagued by an enormous surfeit of bad loans so great that the government was, in April, forced into rallying bank executives, insurers and investors to put €5 billion (£4.2 billion, $5.57 billion) behind a rescue fund for its weakest banks. The movement has gained momentum as a result of the EU's attitude towards the rise of terrorism, migration problem and persistent economic malaise.

There are no comments on this feature at present.

Italian PM Matteo Renzi has tied his future to winning the vote so a defeat will naturally open up another political air pocket at the top of a European government. A "high" political risk premium is already priced in the Italian government bond market with Italy having underperformed Spain by 30bp since early September, mainly on political woes. It is unclear whether or not Renzi will stand down, as he has repeatedly changed his stance in the lead up to the referendum, seemingly finding it impossible to decide what to do after the vote.

People have demanded Renzi's resignation and called the reform "disgusting". Mr Mingardi said the political establishment is anxious that the beneficiaries of an election would be the populist Five Star Movement.

"I don't know if it will be useful to [Italian Prime Minister Matteo] Renzi if I say that I hope for a "yes" win". The current structure can lead to legislation being slowed up by one of the two chambers and reforms to the Italian Senate - cutting the number of Senators to 100 for example - will allow the Chamber of Deputies to vote on measures such as the Budget a lot easier. And even if Italians voted "yes" to quitting, the result could still be blocked by the Constitutional Court, one of the country's supreme courts.

Nearly all worldwide attention being trained on Italy and Prime Minister Matteo Renzi now is focused on the referendum. Italians will vote on the referendum on December 4.

"Even a lot of "No" supporters are convinced that many points of the referendum are correct but the text is not sufficiently clear", Ms Nocera told The National, adding that Mr Renzi's biggest mistake was turning the vote into a referendum on himself by promising to step down if the proposed reforms are rejected.

But a negative vote likely would make it harder for Italy's fragile banks to recapitalize in the short term, exacerbate tensions among European leaders in the medium term - and could alter the vision of Europe in the long term.

Related News:

  • Suspect in Fatal Shooting of Tacoma Officer Dead

    Suspect in Fatal Shooting of Tacoma Officer Dead

    Earlier, the neighborhood had been locked down while officers from multiple agencies worked to bring about a peaceful resolution. Later during the 11-hour standoff, they were able to rescue a 6-year-old boy. "That provoked the shot to take the suspect out".
    Ryanair launches package holiday service

    Ryanair launches package holiday service

    These are being positioned as both packages (all ATOL-bonded and insured) for long-stay holidays and city breaks. Ryanair has been seeking to remould itself from an airline to a broader digital business.
    Chapecoense air crash: Colombia investigates fuel link

    Chapecoense air crash: Colombia investigates fuel link

    Only six people of the 77 on board survived the devastating crash in La Union town, outside of the north-eastern city of Medellin. A Brazilian defense ministry spokesman said 20 bodies had been identified by Wednesday morning.
  • Konta splits with Spanish coach

    Konta splits with Spanish coach

    She also won the Women's Tennis Association's most improved player award for 2016, having been ranked 147 in June 2015. Johanna Konta has surprisingly split with her coach Esteban Carril after breaking into the world's top 10 in 2016.
    Cognizant Technology Solutions Corp. (CTSH) Receives

    Cognizant Technology Solutions Corp. (CTSH) Receives "Outperform" Rating from Sanford C. Bernstein

    Let's have a look at some of the important valuation ratios of the Cognizant Technology Solutions Corporation (NASDAQ: CTSH ). The 30 stock analysts who cover the stock have an average PT at $63.73, with individual targets in the range of $48 to $75.
    Richmond Park by-election: 53.6% turnout

    Richmond Park by-election: 53.6% turnout

    She said: "I think the Labour vote in Richmond has proved very resilient in the past, and I think it will be resilient again". She shares Mr Goldsmith's views on Heathrow, opposing the building of a third runway at the hub.
  • Accused Charleston church shooter will represent himself at federal hate-crimes trial

    Accused Charleston church shooter will represent himself at federal hate-crimes trial

    The court needs 70 qualified jurors before attorneys can begin whittling that number down to 12 jurors and six alternates. As jury qualification began Monday, Roof, of the Columbia area, wore a gray-striped jail jumpsuit and white tennis shoes.

    Brazilian Soccer Clubs Offer Extensive Support To Chapecoense After Tragic Plane Crash

    Recently, they defeated Argentina's legendary San Lorenzo squad in the finals last week during the Copa Sudamericana tournament. The club announced that one of its goalkeepers, 31-year-old Marcos Danilo, initially survived the crash , but later died.
    Toure could get Champions League call - Pep

    Toure could get Champions League call - Pep

    But asked if he regretted leaving Toure out of the European squad in the first place, Guardiola simply replied: "No". Guardiola must be proud of his players who were able to earn all three points on the road in a tough environment.
  • Browns coach Jackson emotional after 12th straight loss

    Browns coach Jackson emotional after 12th straight loss

    Still, the brothers are excited to be on the same field for the first time. "That has always been a dream of mine", Carl said. The reserve cornerback was embraced on the sideline by teammates, who continued to play inspired defense in the second half.
    Demi Lovato opens up about living with bipolar disorder

    Demi Lovato opens up about living with bipolar disorder

    She shared how she manages it all, saying, "Every day is a work in progress so hopefully I make it to 2017 with my sobriety". In the past, Demi Lovato has been candid about her struggles with drug addiction, bulimia, and mental illness.
    Tiger Woods returns with mixed bag and a 73

    Tiger Woods returns with mixed bag and a 73

    Woods' troubles Thursday began on the par-5 ninth hole - he tried to hug the left side of the fairway but tugged it into a bush. But his mistakes, while not big misses, were costly.

Most liked

Families prepare to receive the dead from Colombia crash
Aviation officials indicated that the flight recorders will be sent to the United Kingdom as evidence for a full investigation. The cause of a Brazilian soccer team's tragic plane crash is now clear: The aircraft simply ran out of fuel , the BBC reports.

The Brazilian Soccer Team's Home Town Has Begun 30 Days of Mourning
A plane carrying 81 people crashed in Colombia on Monday night with local police confirming that just five people have survived. The latest news of death toll including some "Team Chapecoense" on the said tragic event is 71 persons leaving 6 survivors.

Mother, Grandmother is 'New' Face of HIV/AIDS in MA
For example, global coverage rates for all HIV testing, prevention and treatment are lower among men than women. Additionally, 1 in 3 persons with HIV in Latin America and the Caribbean do not know that they have it.

Campaign observers monitor Wisconsin recount
Meanwhile, the recount in MI , where Trump won by 10,704 votes, is set to begin on Friday, barring a legal challenge from Trump. Stein raised almost $ 7 million in less than a week to launch vote recounts in Wisconsin , Michigan and Pennsylvania .