One suspects that despite the wishful thinking among some Brexiteers, the Italian referendum defeat and the resignation of prime minister Matteo Renzi will not end up with the country exiting the European Union.
But it will place enormous strains on the eurozone.
The current situation is a bit like 1992, when first the UK and then Italy and others were bounced out of the European Monetary System (EMS) by speculators who recognised fundamental disparities among the nations seeking a common currency.
Down and out: Italian prime minister Matteo Renzi gambled and lost on a referendum
Brussels and Frankfurt need to recognise that unless the underpinnings of the eurozone are fundamentally changed, all members of the single currency area will simply become weaker and weaker.
The best remedies for sorting out the mess are to be found in the book by former Bank of England…