Per Favore, Put the Euro to a Vote

My piece on why a referendum on the euro could be good for Italy has just been published by Time.

Of all the proposals put forward by the wild-haired comedian turned populist politician Beppe Grillo during the run-up to Italy’s elections in February, one stood out as the most controversial: his insistence that Italy hold a referendum on whether the country should give up the euro as its currency. After all, Rome had just spent the previous 15 months doing everything possible to hold on to the euro — tasking a technocratic government with implementing unpopular tax hikes and reforms, amid fears that an unruly exit by the euro zone’s third largest economy would bring down the entire currency union.

Grillo’s proposition was easily dismissed by the country’s political and media establishment, providing ammunition for opponents eager to paint him as dangerously misinformed. But Grillo was, in fact, tapping into something real. More than half of Italy’s voters chose candidates who explicitly rejected austerity measures widely seen to be imposed by German and other European bureaucrats and bankers.

Read the rest.