Nouriel Roubini: Why Italy’s days in the eurozone may be numbered

Nouriel Roubini: Why Italy’s days in the eurozone may be numbered With interest rates on its sovereign debt surging well above seven per cent, there is a rising risk that Italy may soon lose market access. Given that it is too-big-to-fail but also too-big-to-save, this could lead to a forced restructuring of its public debt of €1,900bn.

That would partially address its “stock” problem of large and unsustainable debt but it would not resolve its “flow” problem, a large current account deficit, lack of external competitiveness and a worsening plunge in gross domestic product and economic activity.
http://link.ft.com/r/ZE9K33/VL0EBP/9ZA4GU/HYEYBG/B5I0BQ/D5/h?a1=2011&a2=11&a3=10