The failure of the constitutional reform referendum in Italy on 4 December 2016 had a predictable effect on the Italian political scene and a less predictable impact on the ability of Italian banks, notably Banca Monte dei Paschi di Siena, to extract themselves from the financial mire that they find themselves in without falling foul of EU state-aid rules.

James Roberts, chief economist at Knight Frank, suggests, though, that the initial signs are that Italy, “as was the case following the United Kingdom’s Brexit vote and the US presidential election, will move past the initial volatility, with investors moving back into growth investments faster than commentators had assumed.”

Real estate markets in Italy continue to confound critics and are demonstrating resilience to Italy’s sluggish economy. Knight Frank reported in December 2016 that the Milan office market saw strong levels of occupier demand in the first nine months of 2016, with ta