Sunday, November 13, 2011
Italy approves austerity, Berlusconi resigns
This article heralds gives a basic idea of the measures to be taken by the Italian Government and people in regards to their current debt crisis. Measures such as, pension reform, raise in the retirement age, the privatization of state-owned companies and sale of state-owned properties, the liberalization of certain professions, and investment in infrastructure. This turn of event comes with the realization of Italian politicians that daily in their reform could mean the end of Italy, as they make changes and receive support from the European Central bank. The article continues to say though the market seemed to have reacted favorably to the actions by the Italian government the Nation is still not out of the risk of default with it's 1.9 trillions Euro debt that makes up 120% of their current GDP.
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This was a nice article. However, I don't think that there is much hope for Italy to get help anytime soon. I've read other articles where people say Italy is too big to bail out. If that is the case it would be too detrimental to the euro to bail them out. However, I've also read that there would be a lot of damage to the euro if they let Italy fail. So, we will just have to sit back and wait to see what the euro-zone does.
ReplyDeleteIt's funny that even with all this debate over Italy and the Eurozone, all we can do is wait and see. From a purely theoretical standpoint I would love to see what happens if Italy did in fact default on its debt and how that would affect the world economy. However, since we can't do that , its crucial for policymakers to begin the long road of putting Italy back on track, and as quickly as possible.
ReplyDeleteWell for a country that spends double the amount on clothing than most industrialized nations (in terms of percent of income), If Italy fails, hopefully they will look good doing so.
ReplyDeletefunny comment last one
ReplyDeleteanyways
i feel that Italy is just going through bad luck in terms of the fact that it could have financed its debt...
however of this is wat was needed to get Berlusconi to leave then so be it...