GETTYItaly could be on the brink of a financial crisis
The Mediterranean country is already engulfed by a £310billion (€349billion) debt mountain that banks accumulated during a three-year recession.
And today Deutsche Bank's strategists warned of more political and economic uncertainty from the eurozone's third largest economy,
They said: ”A country nearing an election and with high populist party support, with a generationally underperforming economy, a comparatively huge debt burden.
“And a fragile banking system which continues to have to deal with legacy toxic debt holdings ticks a number of boxes to us for the ingredients of a potential next financial crisis."Related articles
This could push Italy back into recession and, in a doomsday scenario, generate a Greek-type meltdown that Europe would find almost impossible to contain.
The warnings echoed earlier concerns Italy’s series of economic and political crises could blow up to rip apart the eurozone, as disastrous Greece almost did last year.
Aside from its banking troubles, Romes already