How Italy Leaves the Eurozone, Step by Step

Mike Mish Shedlock

Reuters has a Factbox List of Key Dates, five of which have already passed with no consequences. Here are the remaining steps to laugh at.

Nov. 19: In the event its budget were rejected by the Commission, the Italian government would have three weeks from the date of the EU opinion to submit a revised budget.
Dec. 3: Monthly Eurogroup meeting.
Dec. 10: The Commission would have three weeks, likely until Dec. 10, from the submission of Italy’s amended budget to adopt a new opinion in which it would describe Italy’s overall budgetary position and its impact on the whole euro zone.
Dec. 13: The European Central Bank’s Governing Council holds a monetary policy meeting that is set to wrap up its bond purchase program, a widely expected move that could, however, further increase Italy’s spiraling debt servicing costs.
Dec. 14: EU leaders at their regular end-of-year summit would likely discuss Italy’s budgetary plans if no solution was found at this stage, further increasing market and peer pressure on Rome.
Feb. 4-7: This is the week when the Commission is expected to publish its economic forecasts up to 2020, which would show whether EU calculations match Italy’s growth, debt and deficit projections which underpin budget targets. The data could pave the way to sanction procedures if EU and Italian data differed widely.

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