ROME—The end of Greece’s marathon bailout on Monday would mark the closure of the eurozone crisis—if only it weren’t for Italy, and nagging fears that the euro isn’t fixed after all.
European Union authorities will hail as a victory the completion of Greece’s financial-rescue program, an eight-year drama that triggered a wider European sovereign-debt panic. Greece’s economy has begun to grow again, although recovery has far to go. Defying many predictions, Greece has stayed in the euro, thanks to the strength of public support for keeping the currency, even amid one of the deepest economic depressions of modern times.
Meanwhile French President Emmanuel Macron, German Chancellor Angela Merkel and other EU leaders are discussing the next moves to bolster the currency union, building on various overhauls since the crisis.
Italy shows it might not be enough. Renewed market tremors last week over Italian debt, and fresh verbal attacks on Europe’s establishment by politicians in Rome, suggests the specter of destabilizing capital flight from a eurozone country could return. A first test will come this fall, when Italy’s new populist government must present a budget and explain how it will pay for its costly promises to voters.
An expanded version of this report appears on WSJ.com
Popular on WSJ.com:
Is It Time to Sell Your NFL Team?
Samsung’s Galaxy Note 9 Is Crazy Powerful. Can You Handle It?
Want news about Europe delivered to your inbox? Subscribe to MarketWatch's free Europe Daily newsletter. Sign up here.
