Photo: Nicki Varkevisser on Flickr
With faltering banks, a failing economy and renewed austerity cuts, things are not looking good for Italy.Italy’s economy is the fourth-largest in the European Union, and its debt burden — wavering at about $2.2 trillion — shows no signs of subsiding, regardless of PM Silvio Berlusconi’s decision to ramp up reforms. Oh, and its economy looks a real lot like Greece.
Continuing market jitters are evidence that the ECB’s bond buying measures are only a temporary stopgap for Italy. What’s more, experts everywhere are realising that not even the European Financial Stability Facility (EFSF) can save Italy’s economy.
How did the land of pasta and pepperoni end up in such a bind?
Too much emphasis on family means lots of small, privately owned businesses and few large, publicly owned companies.
In Italy, nobody moves! Not even between counties.
Source: European Commission
And -- because they can't get a job and move up the ladder -- immigrants aren't replacing Italy's ageing population.
No wonder all the Tunisians are going to France.
Source: European Comission
Particularly when Prime Minister Berlusconi makes a habit of appointing showgirls to powerful posts.
He tapped Mara Carfagna to be the Minister For Equal Opportunity and a member of his cabinet.
The first round of the Amanda Knox trial never met more than three times per week. Because a lawyer for the appeal is a member of Parliament, the newest round only meets on Saturday mornings.
Source: Rolling Stone
And the fact that it's harder to do business in Italy than in any other OECD country (OK, well except Greece)...
It is more expensive to purchase electricity as an industrial producer in Italy than it is in any other EU state.
Italy's annual growth rate has been under 4% since 1988.
Source: World Bank