Italy

Italy and the Eurozone Crisis

Italy is believed to be next in the economical crisis in Europe. The already weak economy is following closely in relation to that of Greece. Greece’s collapse is believed to be the first in a somewhat domino effect of larger economies collapse. Despite their relatively stable economy, high debt level will eventually cause Italy’s demise. The debt continues to rise even though the country has become less dependent on foreign assistance. A new deal was proposed to support the funding of economies in need, such as Greece. This plan is meant to decrease how much money is borrowed in order to ensure economic prosperity.

Italy’s economic troubles could cause quite a lot of damage in Europe. While Greece’s economic collapse was damaging, it would not compare to the collapse of larger economies such as Italy. Collapse of one large economy could lead to the collapse of others and be difficult to recover from. The proposed solution could eventually save the remaining countries from Greece’s fate and ensure the Euro’s stability.

Realist

http://www.corriere.it/english/editoriali/Monti/171011_bfa4757a-f8c6-11e0-a70e-53be2c0ab142.shtml

http://www.bbc.co.uk/news/business-15429057

November 10, 2011 at 10:06 pm