The referendum, introduced by Italian Prime Minister, Matteo Renzi, and his left of center Democratic Party, has divided the Italian citizenry. Renzi has promised to resign if the vote is no.
Let's Oust Renzi Opposition Demonstration
On Sunday, December 4, Italy will vote yes or no on a referendum that can have grave consequences for Italy and the EU. The referendum proposes to change Italy's constitution by cutting the number of senators from 315 to 100 and removing the Senate's right to hold votes of no confidence in the government. This will eliminate some of the checks and balances enacted after World War II.
A yes vote increases government power and critics say it could create an obstructionist Senate.
There are political forces in Italy, post Brexit, that are arguing in favor of:
- Exiting the Euro
- Exiting the EU
Italy is the sixth largest economy in Europe and a "No Vote" may be an initial shot that could lead to Italy's exit. The political game is afoot and poses a potential threat to the EU and the entire globalization movement.
The results of this vote will likely be felt in the global market-place Monday morning, and beyond. The U.S. markets were quiet at Friday's close anticipating the upcoming event as investors watch closely.
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