Europe's Italy problem: and, as a result, are monetary union and the euro in serious trouble?

The International Economy | March 22, 2005| | Copyright

In April 2000, Foreign Affairs published an article by the then-recently deceased Federico Mancini, Italian judge on the so-called European Court of Justice. Mancini applauded the 1990 decision of Mitterrand and Kohl to ordain "the immolation of the deutsche mark on the altar of a common European currency." Mancini gloated that while the Germans thought the Maastricht bar for entering the euro--in particular the budgetary criteria--had been set high enough to exclude Italy, "The effort made by Italy was not just extraordinary; it was superhuman ... The Italians won their bet ...

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