From Italy: a very sensitive situation

Carlo ALTOMONTE Associate Professor. Department of Policy Analysis and Public Management, University of Bocconi (Milan) The implications of Brexit for Italy should be evaluated from both the economic and political point of view. From the economic point of view, the key word is ‘uncertainty’. In the medium term, the consequences of Brexit will ultimately depend on the (uncertain) final terms of the ‘divorce’ agreement between UK and the EU. But what this agreement will look like is very unclear. Options range from an association agreement with the European Union under art. 310 of the TFEU, thus having the UK ultimately continue participating, with distinctions, to the European single market policies (in particular the free movement of goods, services, capital and persons), to a ‘hard’ Brexit, in which the UK takes the status of a generic WTO country dealing with EU, i.e. facing the EU Common External Tariff on the trade

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