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Former IMF economist says more EU-imposed austerity will have "catastrophic consequences" for Italy

Former IMF economist says more EU-imposed austerity will have "catastrophic consequences" for Italy

His very public role in the Irish bailout made Ashoka Mody an expert on Eurozone economic crises.

 

Now the former IMF man has publicly lambasted Brussels' response to Italy’s new spending proposal. But the good news he believes much Eurocrat talk amounts to bluffing. 

 

"First, there will never be sanctions. Chancellor Angela Merkel once called them “idiotic.” Even European leaders will not add financial sanctions to make a bad problem worse, he insisted. 

 

He also warned Rome to rein in its rebel tendencies, saying "an Italian departure from the Eurozone would be a huge mistake both for Italy and for the rest of Europe."

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