Capital markets were once a price discovery mechanism. No more. They have become delusional after massive injections of monetary heroin by the central banks. Italy now has a 135% public debt-to-GDP ratio; a barely functioning government; a real per capita GDP level that is nearly 15% below 2008; and an overwhelming referendum in its most prosperous region---Venice---to secede.
And, yes, it does get about 30% of it energy from Russia. Thus, having been given the "all clear", the fast money boys have now driven the yield on Italy's 10-year bond to an all-time historical law. Natch.
In Janet & Mario they trust. Until they don't. Stay tuned.