The COVID-19 pandemic may lead to a resurgence of the euro crisis. In this context, Italy seems particularly vulnerable … the common currency. Based on a novel survey experiment, this paper shows that the pro-euro coalition is fragile in Italy …: support for the euro is lower than in most other eurozone countries, and a possible exit could have serious consequences for …

’s prosperity. The paper focuses on olitical events in Italy over the past 35 years and asks whether the adoption of the euro in … 1999 has helped insulate Italy’s financial markets from the adverse consequences of its traditionally unstable political … system. We find that important political events have exerted a statistically and economically significant effect on Italy …