Capitalia spat highlights need for reform

Letter From Rome

It came as no surprise to Italy's banking fraternity that the government's collapse last month barely caused a ripple on the Borsa, while a hefty slump in the Shanghai index that followed a few days later prompted the worst fall in three and half years.

In these post-lira days of the euro, economic power has passed to Brussels, ending domestic isolation and, after 62 governments in 61 years, it has all been seen before.

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