Thursday, 6 June 2013

The Eurozone's Third Largest Economy: An Overview

Any European recovery will exclude Italy.  Data on the economy are so bad it is clear that  Italy would be unable to respond. 

55,000 manufacturing companies closed down between  2009 and 2012.

Numbers employed in manufacturing have fallen by 10% since 2007, with 539,000 manufacturing jobs lost for good.

Confindustria reports that 15% of Italian manufacturing capacity has been destroyed  (and you wouldn't turn to Italy for anything else would you?  Well, perhaps an outing to Venice or something, but no primary products, no financial, or legal services anyone in their right mind would want to use, no research and development or tertiary sector educational attractions, no institutional solidity or even propriety.

32,000 fewer firms.

Credit cuts of between 50 and 60 billion euros (that's Confindustria) from 2012; S&P  says Italian banks in 2012 cut 44 billion euros of credit to  companies in Italy.

Mass unemployment.

Welfare funds running on empty.

Government debt at 134% of GDP by the end of 2013 -  some 2.03 trillion euros.

Italy's democracy  is a shell.  Its economy is hollowed-out and dying where it stands.


Nick Drew said...

oh wow

hatfield girl said...

Or even Aaaaaagh, N.

And the solutions are condemned as populism.

Jeff Wood said...

Only one way forward: leave the Euro.

Trouble is, there is no sign of a political structure which will achieve that.

So much lost production, manufacturing and service; so many disappointed hopes; the only saving the black economy - I have now been here long enough to get an idea of its size.

The EU, and the Euro, are destructive disasters.

hatfield girl said...

I think I'll do Italian banks next.

Jeff Wood said...

OK, HG, I'll bring the gun, you bring the masks.

We may as well rob the banks before the government does.

hatfield girl said...

Rather boringly, J, I think the May 2013 report of the Governor of the Bank of Italy should suffice, though it's awfully heavy.