What is happening in Italy?”, the Guardian journalist John Foot asked himself in a great piece. Nothing new, I would say. While France and Germany are struggling to find a solution for the international economic crisis, Italy confirms itself as a millstone around the European Union’s neck because of its politicians’ incompetence.
The austerity measures passed by Berlusconi’s government in July didn’t satisfy the European Central Bank. Most of the cuts were planned to come into force only in 2013, which is the year when Berlusconi’s government ceases to exist: too late for Italy and Europe. Despite Berlusconi’s claims (until last July he had been denying the existence of the international economic crisis) Italy’s economy is terribly weak and the markets know it. Last week the European Central Bank bought a part of the Italian debt (22 billion euros) but nothing lasts forever: Italy’s markets continue falling and the country is closer than ever to default. Continue reading