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ROME, May 8 (Xinhua) -- Head of Italy's securities watchdog agency Consob on Monday slammed the notion of an Italexit and the EU's bank bail-in rules alike.
In his seventh yearly speech to financial markets, Giuseppe Vegas said an Italexit "would be a shock to the entire eurozone" and place its very survival at risk.
"It would endanger the stability and proper functioning of the financial system," the Consob chief warned.
He spoke in the wake of Sunday's French electoral victory of liberal http://www.rangersauthority.com/authentic-mats-zuccarello-rangers-jersey/ , pro-EU candidate Emmanuel Macron over rightwing, euro-skeptic contender Marine Le Pen, who campaigned on a Frexit platform.
In Italy, pro- and anti-EU parties are jockeying for position ahead of the next general election likely to be held in early 2018.
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"The mere announcement of a return to the national currency would cause an immediate withdrawal of capital by international investors, such that it would gravely endanger Italy's capacity to refinance what is the world's third-highest public debt," said Vegas.
Italy's public debt stood at just over 2.2 trillion euros (2.4 trillion U.S. dollars) or 132.6 percent of gross domestic product in 2016, according to official statistics agency Istat.
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On Monday, the spread between Italy's 10-year bond and its German counterpart closed upwards of 181.9 basis points (up from 175 points at Friday's close), with yields at 2.24 percent, according to Il Sole 24 Ore financial paper.
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Vegas went on to slam the EU's bank rescue rules -- the so-called Bank Recovery and Resolution Directive (BRRD), which was adopted by the EU in spring 2014 but only went into effect in Italy in January 2016.
The BRRD forbids unpopular taxpayer-funded bailouts until all other avenues have been exhausted and investors have been forced to take losses.
However BBRD rules have caused instability and undermined public trust in the banking system instead of their opposite, intended effect http://www.rangersauthority.com/authentic-lias-andersson-rangers-jersey/ , Vegas argued.
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