[a freedom-loving italian]

Truly bad news from Italy, guys.

I like Berlusconi and his firm support for America and the WOT, but I must admit that he failed to deliver his promises on the economy.

In his defense one must say that Italy, like every other EURO country, has no longer any control over his fiscal and monetary policy, as their are decided by the eurocrats of the European Commission and the European Central Bank. And the crazy policy of favouring a strong Euro is extremely unfit for the Italian economy.

One must say also that he did put forth some badly needed "structural reforms" such as the reform of labor market and the reform of the pensions system. He also cut income taxes, but for a minimum amount and starting with low-income taxpayers.

BUT he failed to do such conservative things as cutting public spending, privatizing the public utilities companies and deregulating the economy. As a result, Italy is still a much socialist and regulated economy and she cannot stand the competition from China and India.

As an Europenan, I must say that I envy the business-friendly environment of the American economic system.

[I still care]

Italy is a beautiful country.

I was wondering if some of the problem might also be due to declining population?

[maestro]

This has NOTHING to do with the King or the Pope......

.....move on......

[CROSSHIGHWAYMAN]

Calling Dr. Arthur Laffer.........

HELPO!!!

[Brilliant]

Why is Italy going into recession right when the rest of the world is coming out?

[YOUGOTIT]

The problem is the EU. The left-wingers who have taken over the EU are pushing for a Socialist dictatorship. But Italy is still not is as bad a shape as Germany. One can only hope that Italy can pull itself out of this and continue to support the United States. Population decline might just be a problem as Italy is overrun my illegal immigrants. (from north Africa, Islamic, and from the Arab countries and even the Philippines)

[Brilliant]

In the light of the new data, the E.U. Commission is stepping up the pace of its inquiry into Italy’s accounts as it prepares to propose infringement procedures in June. The weakness of the Italian economy is now viewed as being “structural”, not contingent."

I think this is Mumbo-Jumbo for "it's not our fault."

[Apple Pan Dowdy]

I am sorry to hear that your economy is in such trouble. But happy to tell you that I am taking a trip to Italy in August and will be spending some of those American dollars (they are still "solid"... well for the time being, and if we can just keep conservatives in the white house and congress they might stay solid).

I am looking forward to seeing Italy. We are flying into Rome and doing a 14 day tour of Northern part of the country, ending up in Milan. I know this is off topic for the thread... but is there any wonderful place you want to tell me to be sure and not miss seeing? Advice appreciated!!

[Koblenz]

How fast is Italy's population, or at least its labor force, declining? They've got negative population growth. Hard to grow your economy with fewer working age people each year.

[GOPGuide]

Mama Mia!

[Malesherbes]

This is indeed sad. I lived in Italy for a year and love the country and its people. If this brings Berlusconi down, the alternative will be Romano Prodi - which means more socialism and economic decline. The Italian people, when economically free, know better than anyone else how to combine quality production with civilized living.

[hermgem]

When will it finally dawn on these people that falling behind did not start just yesterday.
For the last three decades they lacked individual country and now total European economic growth.
While the U.S. grew at a 4.5 % average clip, Europeans even during the so called good times snailed along at a <1.5% annual GDP growth.
They never had appetite for cutting back on generous welfare hand outs, for restructuring of obsolete businesses and facing subsequent layoffs. On top of it they are dominated by Socialistic/Marxist unions with wild appetites for mass demonstrations to solve disputes.
Europeans have yet to reach bottom.
Based on public perception they will remain in hopeful expectation for some country again to pull them out by buying their locally produced goods.
If there's no wakeup, both China and India are on course to overtake Europeans economically with subsequent falloff into utter unimportance.
Look at Italians and Germans.
They need to go to the EU headquarters in Brussels and speak French, for exports they need to speak English, to lower interest rates or change spending, they get a no from an appointed European Parliamentarian.
Both China and India do not slow down growing to allow Europeans to hold pace.

[Red Sea Swimmer]

Where's a good Italian nationalist when you need one ?

The Italians should not have ceded financial control of the nations affairs to the financial predators and Eurocrats.

Come on Italy !

Get your act together.

[A CA Guy]

What will this eventually do to the Euro?

[stefan10]

1. The EU has no control over the fiscal policy of Italy or any other EU nation. If you don´t agree blame your government.

2. It is more than true that the common interest rates in the Euro-zone fixed by the ECB has its problems and i am no friend of that. But that an Italian has problems with the Euro is interesting because you could never finance your dept to such low costs in the past. You remember the time of the Lira and the interests that your country has to pay to the investors. If there is any country in Europe that benefits from the Euro than it is Italy (OK Greece also)

3. A part of the problem of the Italian economy is that you protect your companies in the past with the devaluation of your currency and that is not possible anymore.

[an italian]

DITTO my friend!!!!