The Bundesbank Chief has stated there will be no bailout for Italy.
Bundesbank chief: No bailout guarantee for Italy - The Local
There is real fear now in Europe of an Italian bail out which would be a horrendous financial nightmare for Europe
It would most likely lead to a transatlantic banking meltdown if Italy defaulted.
Also there is a growing fear in Northern Europe regarding what is emerging in Italy and what could emerge in other countries in the political sphere.
Beppe Grillo of Italy Is the Most Dangerous Man in Europe - SPIEGEL ONLINE
This all does not bode well for the Eurozone and could to further instability.
I personally have come to the conclusion that the governments of Europe need to act as one and face the markets down as they are clearly dictating to democracies without being elected and are creating a democratic vacuum, that could easily be filled by popularist far left and right parties that could bring in anarchist, communist, fascist or nazi governments in some countries by promising everything and delivering nothing pain and suffering on an even great scale.
What is you opinion regarding this situation.