# Why Italy’s days in the eurozone may be numbered

1 Opinion August 31, 2011 Financial Times ![Nouriel Roubini](/sites/default/files/styles/246w/public/assets/images/nroubini.jpg?itok=R6F5VNmo) By Nouriel Roubini, Professor of Economics and International Business & Robert Stansky Research Faculty Fellow > ...Italy may, like other periphery countries, need to exit the monetary union and go back to a national currency, thus triggering an effective break-up of the eurozone.

*November 10, 2011*

With interest rates on its sovereign debt surging well above seven per cent, there is a rising risk that Italy may soon lose market access. Given that it is too-big-to-fail but also too-big-to-save, this could lead to a forced restructuring of its public debt of €1,900bn. That would partially address its “stock” problem of large and unsustainable debt but it would not resolve its “flow” problem, a large current account deficit, lack of external competitiveness and a worsening plunge in gross domestic product and economic activity.

To resolve the latter, Italy may, like other periphery countries, need to exit the monetary union and go back to a national currency, thus triggering an effective break-up of the eurozone.

Read full article as published in the [*Financial Times*](http://blogs.ft.com/the-a-list/2011/11/10/why-italys-days-in-the-eurozone-may-be-numbered/#axzz1dOyWT3G4).
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- ["Italy’s Debt Must Be Restructured," 11.29.11](http://www.stern.nyu.edu/experience-stern/faculty-research/roubini-restructure-italy-debt)
- ["Why Italy’s days in the eurozone may be numbered," 11.10.11](http://www.stern.nyu.edu/experience-stern/faculty-research/nouriel-roubini-italy-eurozone)
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