03:03 GMT +317 November 2018
Listen Live
    Euro coins seen on the figure of a pair of hands, which are painted in Italy's colour national colours, on the ground in downtown Rome.

    'Socialism is the Root Problem' of Italy's Huge Debt – Pundit

    © REUTERS / Stefano Rellandini
    Opinion
    Get short URL
    413

    Leading EU figure Guy Verhofstadt has warned that the bloc could be heading towards economic chaos unless serious reforms are made. The comments come after a turbulent few weeks; whereby Italy has had its 2019 budget proposals rejected, on the basis that it would plunge the country into a recession by increasing its already huge debt.

    Sputnik spoke with financial expert Jonathan Davis; of Jonathan Davis wealth management for more insight on the issue.

    Sputnik: Why is the EU so unhappy with Italy’s budget proposals?

    Jonathan Davis: I think the European Commission and the European Central Bank and the euro keepers are unhappy with the Italian budget because it’s been created by Italy and not by Brussels.

    That’s the first time that that’s happened for several years. On the other hand; it is a fact that Italy, is on a per capita basis just about the most indebted country in the EU. 2.3 trillion euros of government debt already for 61 million people, it’s a dire state.

    The fact is though, the Italian government has been elected with a massive majority and the super national state of the European Union should clear out and let Italy get on with it.

    Sputnik: Have socialist economic policies been detrimental in Europe?

    Jonathan Davis: I think socialism is the font of all our problems. Greece of course has had its enormous difficulties, although it’s gradually starting to come out of that, but that’s largely down to Chinese money.

    These things did not happen because of the EU, these things happened because of socialism, because of politicians promising more and more and more for less and less and less.

    Of course; it’s not less and less, what it builds up is debt, and it builds up in interest payments and that’s what eventually costs the people, because ultimately you have to take from something in order to pay for the goodness awful interest payments.

    The EU is not the font of all our problems, it’s a symptom of the socialist problem because the EU is a political construct, it is essentially a socialist enterprise, it is a symptom of socialism, not the root problem, socialism is the root problem.

    Views and opinions expressed in this article are those of Jonathan Davis and do not necessarily reflect those of Sputnik.

    Related:

    Italy’s Rising Deficits, ‘No-Deal’ Brexit to Cause New Debt Crisis in Eurozone
    Trump Offers Help in Easing Italy's Record High Public Debt - Reports
    Italy's Business Association Hopes Bill on Budget Cuts to Reduce External Debt
    Italy Bows to Brussels Pressure Over Debt, Calls for Urgent $3.6Bln Deficit Cut
    Italy's National Debt Hits Record High, Reaches Some $2.5 Trillion
    Tags:
    dire state, socialism, crisis, debt, budget, Jonathan Davis, Italy, EU
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik