Accept & Close
Like most websites DDI uses cookies. In order to deliver a personalized, responsive service and to improve the site, we remember and store information about how you use it. This is done using simple text files called cookies which sit on your computer. These cookies are completely safe and secure and will never contain any sensitive information.
The Italian Story: Easy Math, Somewhat Complicated Economics, Extremely Complex Politics
2 min read
In recent weeks I have been covering the current Italian stalemate with the European Union regarding the Mediterranean country’s 2019 budget. Its targeted 2.4% fiscal deficit as a share of its GDP is three times as large as the 0.8% the previous government had committed the country to achieve in order to start reducing the Italy’s massive accumulated sovereign debt burden (in excess of 130% of GDP). As the title of this article implies, the math is pretty easy. Even at 2.4% of GDP (if that’s what Italy actually ends up adhering to), the debt to GDP could still edge…...