No,it's not a saturated economy,european economies deal with crisis on a cyclical basis,they get hurt,they come back,end of story,it happenned before you know.
Ofcourse there won't be a war,wtf?? When did I mention war? No,you're not demanding anything right you can't keep a ambassador hostage and that's a given.France has a lot more money to loose offending Italy than what it gains vis a vis India,trust me,and the whole EU won't allow one its members to be treated in complete defiance of international law ,it could have been the bulgarian ambassador and the results will be the same.
Yes,I think the expulsion of the ambassador is the right thing to do after he did,and probably Italy will pay economically and politically in regards to India for she dis but beeing part of a civilised international community means you have to play by the rules or beeing sent to a nasty corner with zimbabwe,n koreea and iran.
I'm sorry but numbers proove you wrong,please come back and discuss when you can have actual facts behind your stories