The European oligarchy’s enforcer, European Commission President Ursula von der Leyen, made a scandalous comment about Italy on Sept. 25 which may very well point the direction of a sovereign debt blowout in Europe, adding to runaway inflation and a corporate debt-liquidity crisis. Speaking (in English) at Princeton University in the United States, von der Leyen said, referring to the European oligarchy’s assumed powers and the Italian national election on Sunday, Sept. 25, “If things [in Italy] go in a difficult direction, we have tools—I’ve spoken already about Hungary and Poland.”
The blatant threat was immediately understood and denounced in Italy: If the Lega-Forza- Fratelli coalition won the parliamentary election Sunday (they did, with absolute majorities in both houses), the European Commission would withdraw loans and grants provided to Italy under COVID relief (as with Hungary and Poland) and/or the European Central Bank would at some early point stop buying Italian government debt on the secondary market, causing interest rates on that debt to shoot up.
The European Commission president’s idea would be that this would topple the new government and allow her, once again, to impose Mario Draghi as Prime Minister. But the attack could easily go out of control, since it would come on top of a U.K. debt market and currency crisis already underway. The crisis could rapidly get even worse if the newly elected government of Giorgia Meloni in Italy had meanwhile announced tax cuts like those which triggered the British pound collapse.
