Car demand is I think more influenced by confusion about what will be taxed extra in a few years. After years of being encouraged to buy diesel now we are being told to not to, but there is pitiful infrastructure for electric/hybrid alternatives. Result, together with Brexit uncertainty, people put off big ticket purchases. Similar with house sales, but they are due for a downward correction whatever.
Italy’s national debt would be its national debt in € or lire. I am reading Varoufakis’ book about his negotiations with the EU during the Greece crisis. It’s dense, self serving but amusing as well. Greece could have defaulted, could have left the €, could have left the EU. But all these options were worse than the admittedly harsh deal they eventually got. These countries have deep structural economic problems which the EU has masked rather than worsened I think. But the €, I agree, was/is not a good idea as it has been implemented. It needs much more economic policy integration to work as a real single currency.
The EU might change its position at 11.55pm CET on 29th March. But it might not need to.