
Italy's premier, Silvio Berlusconi, is on his way out. Photograph: Filippo Monteforte/AFP/Getty Images
"The country is label-queen heaven – Ferrari, Prada, Armani etc – and a major player in utilities, telecoms and banking. But the recession has put a strain on its economy and a succession of pop-up governments have failed to tackle fundamental problems, including the massive pension debts owed its ageing population. Italy's debts now top $2.2tn, or 120% of gross domestic product."
"At this point, Italy may be beyond the point of no return," Barclays Capital said in a gloomy report this week. "While reform may be necessary,we doubt that Italian economic reforms alone will be sufficient to rehabilitate the Italian credit and eliminate the possibility of a debilitating confidence crisis that could overwhelm the positive effects of a reform agenda, however well conceived and implemented." (Dominc Rushe, The Guardian)
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