France, Germany may find the carrot more effective than the stick in dealing with Italy

With Greece teetering on the brink of fiscal disaster, France and Germany opted to employ a strategy of tough love by issuing warnings if their government did not take action. Recent statements indicate the same strategy will be used in dealing with Italy. But, analysts contend, the carrot may be more effective than the stick.

Fredrik Erixon, head of the European Center for International Political Economy argues that fundamental change will not be possible “if there’s a new prime minister or new elections” because Greece and Italy’s “institutions don’t have that much power to make changes.”

Read more analyst reactions in The Washington Post.

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