Will Italy leave the Eurozone or will the Eurozone fall apart?

From 23-26 May 2019 Europeans will have the chance to determine the future of their continent during the European Parliament elections, says Antonio Maria Rinaldi, a professor of economic policy at Link Campus University in Rome, adding that if the bloc fails to renew its flawed monetary system, the Eurozone will crumble.

According to the professor, if Europeans succeed in changing the bloc's financial system through democratic means and national economies are again brought into focus instead of vested interests of multinational corporations, then the situation will take a favorable turn.

"If this does not happen, then Italy will find itself in acute crisis and will be forced to leave the Eurozone," he suggested.

According to Forbes, the Italian economy has slid into economic recession at least three times over the last decade. In late October 2018, the rating on Italy's debt was downgraded by Moody's Investors Service to "one level above junk", as The New York Times reported. The media outlet also suggested that the third largest economy in the Eurozone may become "the epicenter of the next financial crisis".

The euro came into existence on 1 January 1999 with notes and coins beginning to circulate through the European Union in 2002.

He explained that "the euro system is based on price stability, near-panic control over inflation, the strict financial accountability of governments and a balanced budget, which is regarded as a prerequisite for economic growth".

For its part, Italy was used to a different model, which was largely influenced by Keynesianism and allowed the government to interfere in the country's economy, the academic noted.

"In the EU, any assistance from the state is prohibited", Rinaldi highlighted. "Therefore, we can no longer count on the state to correct the situation; the government can no longer intervene to fix a problem. The euro system rules are used as a 'stick' for those countries that do not comply with them, and Italians know this perfectly well…"

According to the professor, the system has become much tougher that it was considered according to the Maastricht Treaty of 7 February 1992.

"It is necessary that countries once again have the opportunity to adjust their economies," he opined. "Now it is impossible. This is really a problem. No one dare say that we are moving in the wrong direction."

The professor did not rule out that the Eurozone may one day collapse if the European national elites fail to find a way to correct the euro system. At the same time, he presumed that there should be a mechanism allowing the EU member states to pull out of the Eurozone in a coordinated fashion.