This is what "Delusional Economics" had to say.
The latest data out of Europe, specifically the PMI data, shows that France is becoming further entwined in the downfall of the periphery while Germany continues to be the only real area of sizeable economic strength in the area. As we saw in Moody’s downgrade of the UK the lack of overall growth continues to leak out of Europe. The problem is that this is just more evidence that the current policies are forcing one-sided retrenchment on debtor economies and the much needed re-balancing is failing to occur because creditor nations have not introduced their own policies to compensate.
So as I said back in January:
Much like Greece’ Alexis Tsiparis, Italy’s 5 star movement leader Beppe Grillo is running a campaign based on renegotiating the country’s relationship with the rest of Europe, including the scrapping of austerity....
As I’ve been covering over the last few months the downturn is beginning to creep into other AAA rated countries with The Netherlands and France looking particularly vulnerable as we enter 2013. On top of that, all of the original PIIGS, with the probable exclusion of Ireland, still have the potential to miss their existing fiscal targets and that is even after the latest Greek write-downs.
From: Europe waits for Italy
ROME — A populist with wild hair, a booming voice and untucked shirts, Beppe Grillo now holds the fate of Italy — and to some extent Europe — in his hands.
After winning a quarter of the votes in last week’s national election, Mr. Grillo, a comedian turned activist, is being courted by Italy’s traditional political players, but having thumbed his nose at them for years, he is having none of it. He has ruled out such alliances, throwing Italian politics into a logjam.
That's according to an article in The New York Times. Beppe Grillo, Italy’s Gadfly, Reflects a Movement - NYTimes.com.