Italian business pays the price of bad politics as economic reform is ignored

Beppe Grillo's Five Star Movement has no strategy (photo:dpa)
Beppe Grillo's Five Star Movement has no strategy (photo:dpa)

Politicians are refusing to reach agreement on forming a new government for Italy after February’s inconclusive election. Italy is in trouble but staggers on with more bad economic news expected as politicians refuse to introduce reforms. Economic change will happen after a new government is formed and decisions are made on a eurozone bail-out or an Italian bail-in.

EVERYBODY knows Italy is in trouble. Growth is negative, there is no sight of an end to recession, the debt/gross domestic product (GDP) ratio keeps increasing, and assessment of the public budget deficit has almost become an exercise in creative accounting.

The message now is clear.

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