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Libya’S Unrest Risks Major Economic Toll For Italy

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http://www.nytimes.com/2011/03/05/world/europe/05italy.html?_r=1&hp

ROME —In response to the murderous tactics of Colonel Muammar el-Qaddafi’s militias against unarmed protesters, the United States and the European Union have announced steps to freeze the regime’s assets. The International Criminal Court has opened an investigation into Libya’s possible crimes against humanity.

But Italy gets nearly a quarter of its crude oil and 10 percent of its natural gas from Libya, has billions of dollars in lucrative contracts with the Libyan government and receives billions more in Libyan investments, has held back on freezing any assets. Officials say they are waiting for a “coordinated” response on whether the measure applied to Libyan sovereign funds, a ruling it said it hoped would come as soon as next week.

With Libya in turmoil and Colonel Qaddafi clinging to power, no country has more at stake than Italy, which finds itself in its most complicated diplomatic position in decades, pulled between its commitment to NATO and human rights and its scramble to protect its investments in a country that has once again become a pariah.

“France has Tunisia; Spain, Morocco; and Italy, Libya,” said Emma Bonino, from the opposition Democratic Party, who sits on the Italian Senate’s Foreign Affairs Committee and opposed a bilateral treaty between Italy and Libya in 2008.

Since the lifting in 2004 of a United Nations trade embargo that followed Libya’s 1986 bombing of a German disco, Italy has been the European Union’s top arms exporter to Libya, according to union data. Its politically influential energy company, Eni, has tens of billions of dollars invested in Libya. Italy is also Libya’s largest trading partner and Italian companies are building a coastal highway and have contracts in construction, railways and fiber-optics.

Losing that would take “an enormous economic toll,” said Andrea Nativi, the editor in chief of the Rivista Italiana Difesa, Italy’s leading defense publication.

So will Italy end up being the next little piggy in trouble? Everyone is expecting it to be Portugal but the situation in Libya could certainly cause Italy to jump ahead in the bailout stakes.

Still I'm sure the Italians didn't get involved with Libya because of the possibility of massive kick backs and the potential for brown envelopes?

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So will Italy end up being the next little piggy in trouble? Everyone is expecting it to be Portugal but the situation in Libya could certainly cause Italy to jump ahead in the bailout stakes.

Still I'm sure the Italians didn't get involved with Libya because of the possibility of massive kick backs and the potential for brown envelopes?

While not wishing to defend Italy here, one should at least point out that this is a drop in the ocean compared to the UK's behaviour in Iraq, Yugoslavia or Afghanistan, all in support of industries threatened by loss of markets after the end of the Cold War.

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While not wishing to defend Italy here, one should at least point out that this is a drop in the ocean compared to the UK's behaviour in Iraq, Yugoslavia or Afghanistan, all in support of industries threatened by loss of markets after the end of the Cold War.

I'm sure what we are just as bad. Troughing is an international game and our companies have got some big investments in Libya. However it appears that the Italians have bet big on Libya, if it ends up in civil war will it have a major effect on the Italian economy?

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Very sensibly Italy have never sold any of their gold to pay their debts, whether this is legal I'm not sure, but either way, they have the 5th largest reserves at 2700 tonnes, while the UK doesn't even make the top 10 with 300 tonnes. When the collapse comes they'll be rising like a phoenix from the ashes. There is no need to pity them, save it for your fellow citizens.

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http://www.nytimes.com/2011/03/05/world/europe/05italy.html?_r=1&hp

So will Italy end up being the next little piggy in trouble? Everyone is expecting it to be Portugal but the situation in Libya could certainly cause Italy to jump ahead in the bailout stakes.

Still I'm sure the Italians didn't get involved with Libya because of the possibility of massive kick backs and the potential for brown envelopes?

id take a bet that Italys economic stability and ability to navigate this depression is greater than every country in the eurozone apart from Germany, Id be pretty confident France would default before Italy

Edited by Tamara De Lempicka

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Very sensibly Italy have never sold any of their gold to pay their debts, whether this is legal I'm not sure, but either way, they have the 5th largest reserves at 2700 tonnes, while the UK doesn't even make the top 10 with 300 tonnes. When the collapse comes they'll be rising like a phoenix from the ashes. There is no need to pity them, save it for your fellow citizens.

Good, they can sell that overpriced and useless asset and use the money for something constructive.

Might hammer the gold bubble a lot when they dump it.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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