Italy, 158% of debt to GDP! – EconomyMorning

In this AFP article, which can be found on the site here, we learn through the blabla concerning the Italian political disagreements on their own stimulus plan some economic pearls that deserve to be noted and pointed out. finger! Italy adopts recovery plan but government risks imploding This is AFP’s headline about what is happening among our transalpine friends. Imagine that the political parties of the boot would not agree between them, which is all the same a historical constant since 1945 when every 6 months or almost Italy changes government. We are therefore at the stage where the Italian government has just adopted a stimulus plan of 222.9 billion euros to relaunch an economy damaged by the coronavirus pandemic. You will notice in passing that the French stimulus plan is “only” 100 billion euros. If everyone, not everyone, let’s say if some wondered where we were going to find the 100 billion, it is reasonable to ask the question for Italy as well. And the response on both sides of the Alps is the same in the markets! France like Italy we are going to borrow money that we do not have, to revive economies that we continue to keep closed, which is a tad contradictory. Hoping for the effects of a stimulus plan when the health crisis and the traffic restrictions are not over leaves me quite speechless, but everything about this crisis can leave us speechless! With what is happening and this is the other very important information, Italy will end up with at least 158% of debt on GDP, just behind Greece! “And the stimulus plan risks adding to Rome’s colossal debt, which is expected to reach 158% of GDP, the second highest ratio in the euro zone behind Athens” France at 120%, Italy at 158%, l ‘Germany, 75%, Greece, do not talk about it. If Greece could be saved, because its GDP is low in relation to the size of that of the euro zone, Italy is not the same. With such differences, political problems will not remain confined to the Italian political class for very long. This will become a European subject, and it is not said that Germany accepts without compensation, very difficult socially to bear, to pay endlessly for all the European cicadas in the south, France included. Stay tuned. It is already too late, but all is not lost. Prepare yourselves !

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