DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post

**boxcigsnick** · 07-06-2010, 04:43 PM

Italy isn't a bad case study though in the context of public debt. When the initial steps were made to create the Euro zone back in 1992 Italy together with Belgium was the worst pupil of the group with a public debt already equalling or surpassing the GDP.

See here

Despite economically sound (*) fiscal policies both by right wing and center left governments Italy didn't manage to bring down the public debt more than 20%, from 122% of the GDP in 1994 to 103% in 2007.

That shows how difficult it is to get rid of this massive redistribution of wealth in the form of sponsoring the owners of that debt with public funds.

(*) I actually consider 'economically sound' to be an oxymoron but that's another discussion.

07-06-2010, 04:43 PM	#26
boxcigsnick Join Date Oct 2005 Posts 569 Senior Member	Italy isn't a bad case study though in the context of public debt. When the initial steps were made to create the Euro zone back in 1992 Italy together with Belgium was the worst pupil of the group with a public debt already equalling or surpassing the GDP. See here Despite economically sound () fiscal policies both by right wing and center left governments Italy didn't manage to bring down the public debt more than 20%, from 122% of the GDP in 1994 to 103% in 2007. That shows how difficult it is to get rid of this massive redistribution of wealth in the form of sponsoring the owners of that debt with public funds. () I actually consider 'economically sound' to be an oxymoron but that's another discussion.
	Quote