Italy

To Big to Already Failed

Italian economy has gone down the tank and it is soon to be in the hands of former EU Commissioner Mario Monti. Italy must find a way to pay off its debts and secure funding for future investments. The current proposed Eurozone bailout is too small to help the Italian economy. In the coming year Italy will owe 304 billion euros in old government bonds. With interest rates around 7 percent it will be extremely unaffordable for Italy to pay it back. The new transitional government made up of so called technocrats will come into power hopefully by the weekend to ensure that Italy, 17 percent of the Eurozone’s economy doesn’t end up like Greece.

This economic disaster is now a problem going to be faced by the entire Eurozone. If they are not able to find a solution to this problem could very well end up in the collapse of the euro. The Central European Bank is now in charge of making sure that the Eurozone stays stable. It is important that confidence is restored in the Italian economy and that other countries in the Eurozone feel safer investing their money. The financing and debt can only be fixed by good governmental management within the new Italian government and international from the European Central Bank.

Realist

http://www.dw-world.de/dw/article/0,,15524147,00.html

http://www.chinapost.com.tw/international/europe/2011/11/11/322613/p2/Market-pressure.htm

November 11, 2011 at 03:12 am