Italy and the Euro: Expectations versus Results

The adoption of the euro was a significant event for Italy. There were expectations that the currency would transform the country’s political economy, but this did not transpire. This, coupled with the belief that the euro “doubled” prices across the country, led to a widespread disappointment toward the new currency. In addition, the eurozone crisis that started in 2010 led to the formation of a technocratic government led by Mario Monti, who was also received with large expectations that were subsequently not met, which further increased disillusionment. Disillusionment is partially the result of the fact that many of the narratives through which the currency was sold to the public did not correspond with its substantive content. What is more, these narratives were not conducive to some of the reforms that were and are necessary for Italy to become competitive.