People are ignoring the biggest threat to the eurozone — and it isn't the French or Dutch elections
...Italy is now virtually being ignored in mainstream discourse, something that BNP's Multi Asset Strategy team sees as unwise. Here is the kicker from their latest note (emphasis ours):
"In the eurozone markets are focusing on upcoming elections. Sure, there are downside risks, but we give them a low probability. In the Netherlands the anti-immigration and anti-EU PVV may get the most seats in the lower house in the March elections, but it will most likely not be able to form a coalition government. In France, reform-minded Emmanuel Macron looks set to win in a second round of the presidential elections in May. Actually, a lack of reforms, slow growth, a troubled banking sector and high government debt in Italy may be a bigger risk for the eurozone."
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