The newest edition to the list of wobbling fiscal systems is Italy, the fourth largest economy in Europe and the seventh largest economy in the world. The Italian economy is the same size of Greece, Spain, Portugal and Ireland all combined. Italy may be "too big to fail," but the nation is still facing ever increasing — and apparently insurmountable — problems.
As the prospect of Greece leaving the eurozone dominates headlines around the world, Greeks are lining up at ATMs and financial institutions to withdraw their funds in what some analysts have already described as a run on the banks. More than a billion euros have been withdrawn just in the last few days. And experts say the panic could soon spread to other fragile countries such as Italy and Spain.
Even Greek officials acknowledged that the nation’s banks were teetering on the verge of a catastrophe as panicky depositors rush to salvage what they can of their savings. According to minutes of meetings cited in news reports, President Karolos Papoulias told political leaders that Greece’s central bank chief knew “there was great fear that could develop into a panic."
The latest numbers on the Eurozone economies are showing nothing, with an official recession call barely avoided. And without Germany’s slightly better economic performance in the first quarter, the recession would be official.
In an impassioned plea before the European Union’s so-called “Parliament,” United Kingdom Independence Party (UKIP) leader and popular MEP Nigel Farage compared the EU to the Titanic hitting the infamous iceberg — warning that mass civil unrest, revolution, the re-emergence of National Socialism (Nazism) and economic disaster could all be imminent unless the controversial integration project is abandoned immediately. Europe’s rulers, as usual, largely ignored the speech. But citizens and analysts alike took notice.
Farage, likely the most well-known member of the European Parliament, has become internationally recognized in recent years for his powerful speeches slamming the EU and its controversial policies. Millions of people have seen videos of his talks online. But his latest speech on May 9 — so-called “Europe Day” among EU enthusiasts — was among his starkest warnings about the European scheme thus far. It quickly went viral.