Ita-leave? Italian referendum may impact European API supply chain

By Gareth Macdonald

- Last updated on GMT


Related tags European union

A ‘no’ vote in the Italian constitutional referendum this weekend may hurt the country's API industry and impact European drug supply chains.

On Sunday Italians vote on Prime Minister Matteo Renzi’s plan to reduce the size of the Senate and introduce laws that guarantee the biggest party in the lower house, the Chamber, a majority of seats.

Renzi says the changes will allow the Chamber to pass reforms that would otherwise be blocked by the Senate. Critics claim the plan is undemocratic.

The Prime Minister has said he will step down if a majority of Italians vote ‘no,’ which is what the most recent opinion polls suggest will happen.

What impact Renzi’s departure would have remains to be seen. However, according to the Wall Street Journal​, it may allow the populist 5 Star Movement, which has proposed a nonbinding referendum on the Euro and membership of the EU, to take power in the Chamber.


Italy abandoning the euro would likely destabilize international currency markets and - with Brexit looming - further weaken the European Union.

It may also be bad for patients the world over if the Italian active pharmaceutical ingredient (API) is unable to adapt to new economic conditions. According to Thomson Reuters, 73 corporations operate API manufacturing facilities in the country. will be taking a closer look at the implications of Sunday’s referendum result next week.

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