Don’t fear Italexit – it won’t happen

THERE'S a lot of things to worry about in the wake of another government collapse in Rome — but please, let's expunge Italexit from the list for good.

The concept is a familiar one for investors: At a moment of political stress, Italy could crash out of the euro and return to the old lira as a result of bad government decisions, be it by design or accident. If Italexit were to manifest — or even approach reality — it would trigger an unprecedented crisis for both the single currency and the Italian economy. Except it won't happen.

The term is generally misunderstood and grossly exaggerated by international commentators who often ignore how the Italian political and legal systems work. Not to mention the fact that the idea itself has disappeared almost entirely from the national debate. And the business community detests it. It is clear to everyone that to benefit from European perks, you have to drop the Italexit talk and play ball.