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Italy remains in the grip of an economic crisis and state finances are getting out of hand. How is Italy’s financial stability – and how sustainable is the monetary system of the eurozone? Dr. Bert Flossbach, Co-Founder and Board Member of the independent asset manager Flossbach von Storch AG, explains.
How sustainable are the finances of the Italian government? Italy’s debt mountain is 2.3 trillion euros, or 132 per cent of the gross domestic product (GDP). Italy has to refinance loans due and interest payments amounting to at least 300 billion euros in 2019. Added to this is the new financing sought by the Italian government equalling 2.4 per cent of the GDP. This is three times as much as originally planned, and moreover, budge- ting is based on optimistic...
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