Italy's Scary Parallel Currency Idea: The Mini-BOT - Bloomberg
...Italy is the third-biggest economy in the monetary union, and had the bloc’s largest public debt in absolute terms last year.
...a parliamentary motion on how the state pays the arrears it owes to commercial businesses, which Italy’s lower chamber passed last week, has caused such an uproar. The document invited the government to consider issuing small denomination bonds to help speed up its settling of debts. All parties, including the opposition Democratic Party and Forza Italia, voted in favor – the Democrats later disavowed the decision.
... the finance ministry was at pains to explain that there were no plans to introduce the bonds, known as mini-bills of Treasury (or “mini-BOTs”). The creation of a parallel currency would be illegal under EU treaties, and would push Italy out of the euro zone.
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