Parallel currency talk gains ground in Italy

By Izabella Kaminska

Talk of a domestic parallel currency being introduced in Italy is not new.

But it has been reinvigorated this week because of an interview with Silvio Berlusconi (a longstanding proponent of the idea) in Italian publication Libero Quotidiano, where he argues the introduction of a national parallel currency will help Italy regain monetary sovereignty in a way that later supports domestic demand.

Citi’s analysts summarise it as follows:

Berlusconi is convinced such a parallel currency would be consistent with European Treaties, although it would require significant negotiating skills to agree it with Germany and France.