The People Have Spoken / Investment Markets
What it could mean for investment markets
This last year has seen a populist, anti-establishment political trend emerge through the Brexit vote in June and now the election of Donald Trump as the most powerful person in the world.
We also saw this trend continue when the Italian people voted No on Sunday 4 December, in a referendum to change the Italian Constitution of the 3rd largest economy in the Eurozone to effectively give the government more power to make changes and pass laws.
The “No” vote is the third big antiestablishment revolt this year and could cause much instability throughout the Eurozone. Firstly the Italian Prime Minister Matteo Renzi has resigned. Secondly, the “No” campaign was backed by parties that support Italy leaving the euro zone, and with Mr Renzi dethroned, it is quite conceivable for one of those parties to come to power.