RaboResearch - Economic Research

Economic Comment

Italy’s political crisis continues

The short-term economic impact of the current political turmoil is limited. Italy will likely keep the Euro, but a government with Five Star and the League could severely damage debt sustainability and longer term growth prospects.

Economic Comment

Eurozone (debt) crisis: Country Profile Italy

Public sector debt was already very high and economic growth very weak in the years prior to the crisis. Private sector debt was and still is relatively low. Despite recent structural reforms, the economic outlook remains rather weak and unemployment and public debt high.