Greek Financial Crisis Doesn't Pose a Threat to Italy -- PM Renzi

 
   By Eric Sylvers 
 

        The financial crisis engulfing Greece doesn't pose a threat to Italy, though it could lead to problems in other countries outside of the European Union, Italian Prime Minister Matteo Renzi said in an interview with a national newspaper.
        "Italy is already out of the line of fire," Mr. Renzi told financial daily Il Sole/24 Ore.
        Italy's recent return to economic growth, a series of structural reforms and the protection provided by the European Central Bank's bond buying program make the current crisis different from four years ago, when Greece's financial crisis threatened to engulf Italy and other EU countries, Mr. Renzi said.
        "The Greek question is worrying because Europe doesn't have a long-term political vision, which has been lacking for some time," said Mr. Renzi. "It can have repercussions above all for the contagion risks with other non-European countries that have debts with the International Monetary Fund. My worry therefore isn't for what could happen to Italy, but rather for the difficult global scenarios that could follow."
        Athens called a referendum for Sunday to vote on whether to accept the terms its creditors want for more bailout loans. Greek Prime Minister Alexis Tsipras is campaigning for a "no" vote, which he has said will allow Greece to negotiate better bailout terms.
        Mr. Renzi called Mr. Tsipras "uselessly obstinate" and said that an accord could have been found that would have avoided the referendum.
        "Placing the blame on Germany for what is happening in Greece is an alibi that isn't rooted in reality," said Mr. Renzi. "Always blaming the Germans isn't a policy. It can help morale, but it won't help the economy. [Angela] Merkel really tried to find a solution."
        A "no" vote in the referendum will likely lead to Greece leaving the euro and returning to the drachma, said Mr. Renzi.
        Write to Eric Sylvers at Eric.Sylvers@wsj.com
        (END) Dow Jones Newswires

        June 30, 2015 04:10 ET (08:10 GMT)

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