Replies

1. So the stability pact causing the low growth or even has any impact on the economic situation in Italy.
As you said this pact is dead given the fact that countries like Germany France Italy perhaps the UK are not able to match the 3% line this year.

2. We will see a deficit about 4% this year in Italy with a overall dept of what 100+% of the GDP and you want even more deficit spending?

3. Which inflation had Italy over the last years after adopting the euro?

4. The great benefit of the Euro is the reduction of the currency risk for the companies. There is only one major risk left ( Dollar) for the European companies and this saves a lot of money and brings stability to investments.

1. Yes, the stability pact did have a depressing impact on the economic situation in Italy. That's because until 2005 we have been forced to comply to the 3% deficit cap while France and Germany have NOT.

2. Maybe. But what I want for sure is an economy which grows, and I want the gov't to be able to do anything in order to achieve this goal.

3. Officially very low, around 2-2.5%. But the true inflation has been much higher, because of the euro.
Look, i think it is silly to argue about that. Just come visit Italy for a while, and you'll see by yourself that prices here have sky-rocketed. Again, even American expats find it impossible to live here BECAUSE OF THE PRICES.

4. Agreed. But at this very moment I can't help considering the euro a tragedy for the Italian economy.
2.5€ for a small bottle of water, 4€ for a 33cl beer, 50€ for a dinner in a restaurant even in small villages, that's simply insane.