If Italy falls, it would drag the EU with it. At the same time, Italy is too big to be kept alive with financial aids from the EU. So the answer is No: 1.) It

If Italy falls, it would drag the EU with it. At the same time, Italy is too big to be kept alive with financial aids from the EU. So the answer is No: 1.) Italy is not too big to fall. A state bankruptcy of Italy is possible. It would occur if e.g. another external crisis hits the EU. 2.) The EU would do anything in their power to prevent that, but in a real emergency it couldn't do much. Italy would have to be excluded from the Eurozone and default. None of this is likely to happen, though. As for the Italian government, it's just another proof of the fact that modern Western, Christian, humanist values are mostly a lip service and given up at the earliest sign of causing inconvenience. We already know from the war in former Yugoslavia how fragile modern culture is. We're basically just a bunch of stupid monkeys, and that definitely includes the Italian government. :(