Italy's crisis unlikely to get out of hand

ITALY could be heading for new elections in autumn 2018 or early 2019. These elections may well shape up as a de facto referendum on the rules of the European Union (EU) and the euro.

That is why we need to consider the "what if" scenarios. In particular, could Italy trigger a new euro crisis?

A radical government in Rome - or the fear thereof ahead of new elections - could well plunge Italy into a deep crisis with significant financial and economic spillovers to its neighbours.