In what has becoming a stunning movement for freedom and individual rights, Italy, too has voted to overthrow the political status quo.
Projections late Sunday indicated that Italian voters have rejected proposed constitutional changes, in what if confirmed would be a stinging rebuke to the country’s leader and a victory for populists in the heartland of Europe. (WSJ)
The Trump effect.
The referendum is a “test of strength of the anti-Europe and anti-establishment forces in Italy,” former Italian diplomat Stefano Stefanini told The New York Times. The proposed vote would rewrite 47 of the 139 articles in the Italian constitution, which Renzi says need to be replaced to allow the government to compete with European economies.
“If Renzi’s referendum fails, it will be seen as another symbolic victory for the populists that portends greater risk for other states and the EU,” a Eurasia Group Europe analyst told The Telegraph. He continued, “It will make the EU defensive and inward-looking, and more incapable of addressing the problems that are giving rise to the populists in the first place.”
It failed. Between 57% and 61% of voters opposed constitutional changes sought by Prime Minister Matteo Renzi, according to Istituto Piepoli projections.
The EU jumped the shark with the Muslim invasion of Europe and they are going down.
The Express: Mr Renzi hoped Italy’s oldest bank will be bailed out by the Qatari Royal family
As voters go to the polls today to take part in their referendum, bankers at Banca Monte dei Paschi de Siena are attempting a last minute bail-out deal from bondholders, supported by the Prime Minister who has gone all out to request help.
The government has gone cap in hand to the Qatari royal family and a number of US hedge funds in the hope they can request a £4.2BN bail-out ahead of the crunch vote.
According to reports the bank has issued a voluntary bondholder debt-for-equity swap to raise £1.25bn and will further request £830m from the Qatari royal family.It has also been reported that six hedge funds, including those that belong to billionaires George Soros and John Paulson, are stepping in to offer much needed liquidity. Ordinary Italians have been hit hard by Italy’s banking crisis
Insiders say if the bank fails to raise enough funds US banks, including JP Morgan, Mediobanca, Goldman Sachs and Bank of America Merrill Lynch, will move into asset strip triggering a Lehman brothers style collapse.
According to reports but dependent on the result of the referendum, Mario Draghi, head of the European Central Bank, is considering allowing a bail out.
However, new rules mean investors must first face serious right downs before Brussels steps in.
Indeed the outcome of the referendum will have a significant impact with Italy facing a potential ratings downgrade.
“MY GOVERNMENT ENDS HERE” RENZI LOSES ITALIAN REFERENDUM, WILL OFFER RESIGNATION TO PRESIDENT” –
By Tyler Durden, Zero Hedge, December 3, 2016:
Summary: this is what has happened so far in yet another major overthrow of the political status quo:
- Italy PM Renzi lost by a large margin
- In a speech moments after the results were announce, Renzi confirmed he would hand in his resignation tomorrow.
- As Bloomberg notes, the scale of the loss and how quickly it happened cast a huge shadow on the fate of the continent headed into 2017.
- The EURUSD has tumbled to lows not seen since March 2015
EDITORS NOTE: This column originally appeared on PamelaGeller.com.