Italy‘s Government has refused to budge from their budget proposal for 2019 despite the European Union rejecting the plan. Brussels issued Rome with an ultimatum, warning the bloc is prepared to severely fine the member states if their demands are not met by the end of November. The ongoing war of words between the Italian Republic and Eurocrats has been fuelling forecast the country could soon abandon both the bloc and the eurozone.
Mr Grant insisted the “dire” conditions in which Italian banks are at the moment could soon trigger a withdrawal from the common currency in favour of a domestic option.
Speaking to Bloomberg, the financial strategist said: “I think Europe is about to find itself in a great deal of difficulty depending on what they do to Italy.
“It may even get to the point where Italy is going to introduce their own currency or even pull out of the European Union.
“There’s a likelihood depending upon how the rest of Europea responds. This could happen yes.”
READ MORE: Eurozone fragile: Italy’s rule-breaking budget makes eurozone ‘WEAK’
Commenting on the budget clash Italy is embroiled in with the European Union, Mr Grant added: “Italy has serious problems. Their banks are in dire straights across the board, they just had to bail out the Carige bank.
“Italy said they wouldn’t change their budget and I think the EU is going to have a very strong reaction to this.”
Earlier this week deputy Prime Minister Matteo Salvini struck another blow against the bloc’s calls to edit the budget proposal as he claimed Brussels should stop bothering his Government.
Speaking on Italian Maurizio Costanzo’s show, Mr Salvini belittled the EU on its failed attempt to help Italy’s economic growth.
He then proceeded to claim Brussels is full of “scribblers” sending his Government letters “every 15 minutes” and called on the EU to stop “breaking our b***s” on the controversial budget proposals.
As the TV host asked him “How is Europe doing?”, the Italian Interior Minister laughed.
To the amusement of the audience and with poignant sarcasm, Mr Salvini replied: “They’re doing very well, aren’t they?
“They’re helping us on all fronts. Europe has helped us on immigration, on agriculture.
“They’re letting us make wine without grapes, getting rice from Cambodia, wheat from Turkey, rotten fish from the other side of the world.”
“We are polite and will always respond to their letters. But Brussels has insistent scribblers who send little letters to Italy every 15 minutes.”
Italy remains on a collision course with the EU after refusing to change its budget plan despite Economic Affairs Commissioner Pierre Moscovici repeatedly warning Rome about possible fines.
The populist coalition has so far defied the European Commission and vowed not to alter a draft plan on its spending.