Issue link: https://maltatoday.uberflip.com/i/1135882
27.06.19 15 EURO Germany's political class can dominate the EU itself. It was specifically designed to roll up the wealth of the continent in this way, bank- rupt countries less competi- tive than Germany and keep them that way trapped within this single currency regime. The current structure of the euro is even more monstrous than that of the individual currencies themselves. But, the Mini-BOT is a stop-gap measure on the road back to monetary and fiscal sanity. Not perfect, but the right first step. Italy's sovereignty-focused government, an outgrowth of the desperation of the Italian people, understands this dy- namic at a deep level. It is why Salvini and Di Maio have attacked Brussels on the issue of the budget rules, tax cuts and infrastructure spending while soft-pedalling to the Italian people their rad- ical agenda, which is to force a reorganisation of power in Brussels or, failing that, take Italy out of the euro com- pletely. Analysts have been arguing for over two years now since Matteo Salvini came onto the scene as a major player in Ital- ian politics that his best path for success is to always and consistently put Brussels into the position of the bad guy. Breach a budget rule here, detain some human traffick- ers there. Each time the EU responds in the most predictable way, Salvini gains popularity and his arguments against Brus- sels' unwillingness to listen gain credence. And what scares Brussels the most is not what they say do – an increase in Italy's debt, unsustainable spending, etc. Italy is nearly unsalvageable under a euro-only currency regime. No, what EU leader- ship fears the most is that this parallel domestic currency system of the mini-BOT actu- ally works. From what analysts under- stand, through anecdotal ev- idence, Salvini and Di Maio are going to move quickly on the mini-BOT, not just as a threat but as a real thing. And their problems now lie with the technocrats who hold the positions to block their plans – President Sergio Mattarella, Prime Minister Giuseppe Conte and Finance Minister Giovanni Tria. They will try to take down the Italian government before the mini-BOT becomes more than a discussion in parlia- ment. Conte already threat- ened to resign over this issue, but hasn't yet done so. Conte bluffed Salvini and lost. Because with Di Maio in charge of Five Star and the poll numbers where they are, the three technocrats could all easily be removed if they try to take down the govern- ment. Salvini and Di Maio have to move quickly to get the Mi- ni-BOT in place. Europe's fi - nances are unravelling quickly. The ECB is looking at low- ering rates again once Mario Draghi exits the stage. Deutsche Bank is looking to spin off a small portion of its bad assets while Germany's economy continues cratering and a hard Brexit is looking more and more likely. None of these things are euro positive and none of them help the EU in its fight to keep Italy in the fold. Italy will need the mini-BOT once this huge move into sovereign debt is over. It is rapidly becoming the most over-crowded trade in histo- ry with nearly $12 trillion in debt now carrying a negative return. For now, Draghi and the rest of the would-be oligarchs in Brussels are in denial about what Salvini and Di Maio are planning. They won't be once the pow- er struggle for Italy's govern- ment takes centre stage in September when the budget is proposed, Brussels tries to impose fines and Salvini starts selling mini-BOTs. One shouldn't have to won- der how the markets are going to respond to that. mini-BOTs are coming For now, Draghi and the rest of the would- be oligarchs in Brussels are in denial about what Salvini and Di Maio are planning Luigi Di Maio's Five Star Movement has lost ground to the Lega