The government could not get a bill through Parliament that would allow them to pay the interest on their debt, bail out the banks and pay current exorbitant expenses.
This is Italy’s second step toward sovereign default, the first being borrowing more than they could ever hope to pay back, or keep up on interest payments.
But in the long run I am convinced Italians will be better off after the default.
Yup. Default is a great way to force fiscal responsibility. If you can’t borrow, running a deficit is more difficult.