Gorman said Italy’s challenges are part of a broader political pattern that has been seen across much of the world, including in Britain, which voted to leave the EU in 2016. There’s a “sense the average performance of the economy is better than the individual performance of citizens” in each country, he said. Even so, “I don’t think the euro zone is in jeopardy,” he said.
Despite “good global synchronized growth” over the past couple of years, “we’ve had thesepolitical eruptions,” including the Brexit vote, torturous coalition negotiations in Germany and recent strains in Italy and Spain, Gorman said. “It’s this almost competition betweeninexorable corporate growth, earnings improvement, economic strength, againstpolitical instability and the rise of populism.”
This article was provided by Bloomberg News.