Is Italy Next?

If you're new here, you may want to subscribe or learn more about Politonomist.

Despite being put under IMF monitoring, there is no hope for Italy to receive bail-out money. Borrowing rates are soaring in the country, and word from the G20 summit in Cannes is that there is not enough money left to bail out the large Italy economy. Italy is now operating under the watchful eye of the IMF, which may or may not have been at the invitation of the Italian prime minister Silvio Berlusconi. <--more--!>

Berlusconi has refused to substantiate reports that he is to step down as Prime Minister to allow someone else to form government or to push for early elections. Berlusconi does not have enough confidence in the Italian Parliament to pass the reforms that are being called for by investors to increase growth and cut debt. The President can choose to let a government be formed by technocrats rather than call an election, although a political government can still be formed if a loss of confidence vote passes in Parliament.

A large part of the problem seems to be Berlusconi himself. After being rocked with a number of scandals, Berlusconi barely clings to power. His critics say that he puts his own business interests ahead of the interests of the country. His People of Freedom coalition has failed to produce any policies to try and combat the growing debt, which sits at €1.9 trillion.

The future in Italy looks dim. The European Central Bank has been buying government bonds to try and keep the Italian economy from going over the 7 per cent yield level, which is where both the Portugese and Irish governments were forced to accept bailouts. If the Italian economy succumbs to pressure it is big enough to bring down the entire Eurozone with it. With rumours that Fiat, Italy’s largest private sector employer, may be looking to vacate the country where it has been traditionally based, the Italian economy does not show any signs of looking up.

G20 Calls For Bad Bank in Hurt Nations

One of the most interesting conclusions of the G20 summit released in the nine-page communiqué published by the group is that of the establishment of a asset disposal system. Continue reading ‘G20 Calls For Bad Bank in Hurt Nations.’

International Community Attacks Financial Industry

Thursday evening’s G20 agreement concluded with a nine page communiqué which called for, in many ways, a complete overhaul of the financial regulatory institution — including starting an international crackdown on financial institution salaries. Continue reading ‘International Community Attacks Financial Industry.’

Europeans Protest G20 Summit

35,000 protesters gathered in London, England Saturday as just a small part of a European-wide demonstration demanding action on the global recession and climate changes at the upcoming meeting of the world’s strongest economies. Continue reading ‘Europeans Protest G20 Summit.’

Advertisements

Features

Think Money: ‘give attention to retirement planning’

Think Money: ‘give attention to retirement planning’

Read about some new research from financial services company, Think Money, about occupational pension schemes.

Lies of Obama: Credibility or Charisma?

Lies of Obama: Credibility or Charisma?

Barack Obama has not lived up to his promises — claims of change and credibility were seemingly just shows of charisma and ego. From claims of restoring confidence in government to discussion of balanced budgets, accountability and general reform; it seems clear only now that none of this is likely to occur.