Italy’s presidents have been in conflict with Europe because of their problems ever since they achieved power in the year 2018. They say that various European countries’ technocratic rules have caused economic trouble and they blame Europe’s rigidness for the country’s downturn after the 2008 financial crisis. Since then, Italy’s growth has slowly moved along at just barely below 1 percent, behind most other European economies, and the amount of youth in Italy is at a staggering 30 percent, surpassed only by Spain and Greece, currently. Rome seeks more money for it to spend, which it says will boost, productivity within the city, growth in population and tourists, and employment for the future generations to come and, in turn, make paying off their enormous debt easier in the years ahead of them. Meanwhile, the government’s loaning costs are rising. Government bond yields—a check of how much the government pays to keep track of/pay off debt—have nearly doubled since the month of May to their highest in four years. This undoubtedly means that current investors of Italy may and probably will see this as a forthcoming risk.
Recently, the European Central Bank has been thinking about purchasing the crippling Italian bonds, but that idea is being shut down (another cause of friction between Italy and Europe’s institutions). If the banks’ holdings (Italian bonds) become of no value, then the banks (as a result), become valueless. If the Italian banks get into trouble, then the Italian government has to find a way and try to help them out. Rescuing the entire system is beyond the means of Europe and the countries within it.
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Italy’s slow-growing economy has a very basic and radical explanation to it. It’s Italy’s youth demographic; it has way too many young people and way too many older, retired citizens of Italy. In favor of Italy, migration would really benefit them to sort of balance the horrid demographical problem of the country. Though it’s extremely disliked and to add onto this, other Europe partners also disavow the allowance of migrants.
Considering the outcome of what will probably happen to Italy, it’s better off leaving the EU and starting its own currency. Though even though they’re better off doing that, they won’t. Unlike Italy, the United Kingdom was actually thinking of doing that. Italy is for some reason not willing to stand up for their actions and find a clever solution to pay for all of its debts. Instead, they’re getting ready to face yet another financial crisis and letting the EU do their dirty work for them.
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Coming New Financial Crisis in Italy.
(2022, October 28). Edubirdie. Retrieved December 22, 2024, from https://edubirdie.com/examples/coming-new-financial-crisis-in-italy/
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Coming New Financial Crisis in Italy [Internet]. Edubirdie.
2022 Oct 28 [cited 2024 Dec 22].
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