Leaving the Euro. A feasible option for Italy?

Abstract

The Financial Crisis of 2008 has been especially hard on European Southern countries which, although some cautious signs of recovery, are still struggling to find theirway out of it and return to previous levels of occupation and growth. During the last decade, many prominent scholars and politicians have blamed the Euro for such difficulties and paved theway for debate about its break-up as a possible solution. Unsurprisingly, such debate has been particularly lively in Italy. The paper dealswith the possibility of Italy leaving the Euro and seeks to address the question of its feasibility, not only froman economic perspective of cost-benefit analysis but also by examining legal issues and possible political repercussions and technical difficulties. It does so by reviewing themain arguments frompro-exit literature and by assessing themaccording to the European Treaties and to official stances of EU officials and other important politicians.