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[SBD]

Italy minister says should study leaving euro-paper
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Jun 3, 3:21 AM (ET)

ROME (Reuters) - Italy should consider leaving the single currency and reintroducing the lira, Welfare Minister Roberto Maroni said in a newspaper interview on Friday.

Maroni, a member of the euro-skeptical Northern League party, told the Repubblica daily Italy should hold a referendum to decide whether to return to the lira, at least temporarily.

He also said European Central Bank President Jean-Claude Trichet was one of those chiefly responsible for the "disaster of the euro."

The euro "has proved inadequate in the face of the economic slowdown, the loss of competitiveness and the job crisis," Maroni said.

In this situation, the answer is to give the government greater power to defend national industry from foreign competition and "to give control over the exchange rate back to the government."

Maroni is a front-line government minister but his views are not believed to be shared by those with far greater sway over economic policy, such as Prime Minister Silvio Berlusconi or Economy Minister Domenico Siniscalco.

Maroni cited Britain as a virtuous example of a country whose economy "grows and develops, maintaining control over its currency."

When it was put to Maroni that Trichet on Thursday dismissed the idea that monetary union could break up, the minister replied: "Sure, he is one of those chiefly responsible for the disaster of the euro."

He added Trichet should try to convince hard-pressed small Italian businessmen that the euro was a success.

Maroni also dismissed the idea that Italy's struggling economy could face an Argentina-style financial disaster if it abandoned the single currency.

"We're already heading toward Argentina, that's why we have to change direction," he said.

Three years ago Argentina defaulted on its public debt.


SBD

[GenrXr]

I find the whole Euorpean fiasco as leading to one of two things. Civil war once united which we will be forced to come break up. Think mom or dad breaking up a fight amongst siblings. Or the final realization that America is something special and to approach our greatness they will have to go through a re-awakening. Somehow I believe the former will be the most likely outcome in the end.
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"An activist is the person who cleans up the water, not the one claiming its dirty."
"All that is necessary for evil to triumph is for good men to stand by and do nothing." Edmund Burke (1729-1797), Founder of Conservative Philosophy

[rparrott21]

This time we keep it...

[BuffaloJack]

Man this is like dominos. France votes down the EuroConstitution, Netherlands does the same, then Italy dumps the Euro to go back to the Lira; and all in the same week. The only thing better than this would be the dissolving of the UN.

[GenrXr]