Italy’s Prime Minister Matteo Renzi Resigns After Stunning Referendum Defeat – EU Set to Unravel

Update: Italy’s oldest bank, Monte dei Paschi di Sienna (which needs $5 Billion Euros) is down over 6% in opening trade after the referendum, as their rescue is now in doubt.

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Fuck with the bull, you get the horns. Populism is sweeping Europe, and the message is clear: the European Union is a failed experiment, globalism is a job-killing scam, fuck your oil wars. Oh – and it turns out Europeans aren’t too fond of their governments express-shipping tens of thousands of violently aggressive North African migrants into quiet neighborhoods where they run around jerking off in public pools and raping locals.

In a wave of populism directly aligned with Brexit, France’s National Front, Germany’s AfD, and the election of Donald J. Trump, 70% of Italians came out to the polls yesterday to reject Prime Minister Matteo Renzi’s referendum to reform the Italian constitution – with a 60% “NO” vote. The reforms, narrowly approved by Italian parliament, would have slashed the number of senators from 315 to 100. Those 100 would be appointed by regional committees instead of elected by the people.

In response to the overwhelming rejection of this establishment power grab, Prime Minster Matteo Renzi (who looks like the dude from Westworld) has resigned, all but paving the way for Italy’s Five Star Movement (M5S) to Make Italy Great Again (MIGA?).

If you’re not familiar, the Five Star Movement was started by Italian comedian turned fierce political activist Beppe Grillo. M5S is considered to be populist, anti-establishment, big on environmentalism, anti-globalist, and “Eurosceptic” (against the EU) – which includes their strong desire to ditch the Euro post haste. M5S rattles against globalism for decimating Italy’s working class, and much like other populist movements which reject the one-world open border bullshit, M5S is trying to avoid further Sharia invasion. To give you an idea of how serious this movement is, Rome’s first female mayor, Virginia Raggi, was elected on the M5S platform – as was the mayor of Turin. Furthermore M5S has been murdering the establishment in polls all year.

This wave of Populism sweeping Europe is firmly in, and establishmentarianism is out. There’s already been backpedaling out of a freaked out Germany (who just weeks ago was trying to push “migrant quotas” on the rest of Europe). If France’s Le Pen is elected, the EU and it’s ECB financial backstop are all but finished. The Euro would die a chaotic death, sending EU member nations scrambling to return to their individual currencies. Freeloading tax cheats like Greece would die in fiscal calamity. Germany, France, and the UK will probably be OK (for various definitions of “ok”). The rest of the PIGS (Portugal, Italy, and Spain) are in different degrees of trouble. Italy still has massive banking issues, including $400 Billion (USD) of non-performing loans.

Needless to say, the fact that Italians would vote for the very populism that’s likely to remove their ECB backstop and may send them into Ciabatta lines speaks volumes. It will be interesting to see how market participants react to another nail in the coffin of the nearly 20 year old Euro experiment, especially since Italian Credit Default Swaps have been creeping higher over the last 12 months while Italian banks find themselves deeper in hell.

In response to the Italian referendum, the Euro is trying to recover after falling to recent levels tested several times in the last two years.

Get ready for #ITALEXIT

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