Global Geopolitical Series: EU struggles with strategy on Italy, while Mattarella buys time

The comments from Günther Oettinger, a member of German Chancellor Angela Merkel’s Christian Democratic Union (CDU) Party, who serves as the European Commissioner for Budget and Human Resources in the college of the Juncker Commission created quite a furor not just in Italy but across Europe.

Mr. Oettinger couldn’t help himself but to poke in the recent political turmoil in Italy, which is likely to see another election and said, “My Concerns and expectations are that the coming weeks will show that markets, government bonds, and Italy’s economy could be so drastically impacted that they serve as a signal to voters not to vote for populist on the right and left.”

While his comments created furor, we at FxWirePro were amused to see that the European bureaucrats were back to their old formula of fearmongering when that strategy has failed twice already; Donald Trump and Brexit; and comes at a time when Italy’s firebrand leader Matteo Salvini is saying, “Italy is not a colony, we are not slaves of the Germans, the French, the spread or finance.”

European Commission chief Jean Claude Juncker was quick to correct the mistake by issuing a statement saying, “Italy’s fate does not lie in the hands of the financial markets.” Along with European Council President Donald Tusk, who tweeted, “My appeal to all EU institutions: please respect the voters. We are there to serve them, not to lecture them.”

At least some of the top bureaucrats in Brussels understood that only thing left in Italy is to not aggravate the situation.

For strategy: Other than finding some treaty laws to prevent Italy from exiting, the only thing left is to persuade the Italian new generation leaders in staying in EU & Eurozone by means of candy offers.

The new election and the formation of technocrat caretaker government with the help of Italian president Mattarella will by the EU officials some time, which they desperately need.