The short-term economic impact of the current political turmoil is limited. Italy will likely keep the Euro, but a government with Five Star and the League could severely damage debt sustainability and longer term growth prospects.
The EU is temporarily exempted from the steel and aluminium tariffs in the US. While seeking permanent exemption, it might be difficult for the EU to increase defence spending to the satisfaction of the US, due to the possibly massive costs involved.
Economic Comment Dutch version
Around the world, support for economic integration is fading. The imminent ‘Brexit’ is the first serious manifestation of European disintegration. Yet there is not enough attention to the economic effects of the dismantling of European cooperation.