Opinion: Greece was one thing – Italy may be too big for the EU to save

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The question now is not whether the EU (read: Germany) is willing to rescue Italy from coronavirus, but whether Italy could overwhelm even Germany's resources

We cannot answer these questions for sure, because we cannot know how long the crisis will last, how severe it will prove. But if the past few years are anything to go by, the precarity of Italy’s national finances – a high absolute level of national debt at 135 per cent of GDP – means it has little scope to support the banks, which are notoriously exposed to bad debts and insecure assets .

 

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