Avoiding an Italian bailout: Why and how

Avoiding an Italian bailout: Why and how: Francesco Giavazzi, 13 August 2012

Spain looks set to turn to the EFSF for a formal bailout subject to stringent conditionality. In this column, Francesco Giavazzi – one of Europe’s leading macroeconomists and an advisor to the Monti government – argues that Italy’s situation is nothing like Spain’s. To avoid submitting itself to its EFSF conditionality, Italy should reduce its borrowing needs with a determined programme of public asset sales and bridge financing from the Cassa Depositi e Prestiti.

Full Article: Avoiding an Italian bailout: Why and how

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