At this time, the results of the Greek elections and the recapitalization of Spanish banks, the amount of which is 100 billion attracts public attention. Euro. But also it is impossible to lose sight of Italy and the risks of the European crisis that extends to it. The signals that Italy came a potential threat to Europe for a long time.
In particular, its economy is the third largest in the eurozone, the fourth in Europe and stands in seventh place in the world. According to FBS research, Forex Reviews indicate the main factors pushing Italy to the path of Portugal, Spain and Ireland – this is a state debt equal to 120% of GDP, which corresponds to the amount of 1.9 trillions of the euro, as well as a reduction in hope regarding the ability of the head of government Mario Monti stimulate the development of the economy and reduce the debt burden of the state.
In addition, fears about Italian creditworthiness, expressed by an increase in the yield of ten -year bonds, appeared as a result of some sufficiently characteristic negative indicators. Among them are the growth of unemployment, which has most of all affected youth, and is reduced over the past three quarters in a row of MU. The increase in the competition of exported goods and the deterioration of competitiveness in the labor market also played a role. Forex MMCIS Group experts believe that over the next three to five years, pressure on the Italian economy will increase. As already mentioned, the main problem is the country’s debt, the maintenance of which will cost the state 400 billion over the next year. Euro. This factor can increase pressure on politicians and force them to raise taxes in order to satisfy the needs for financing. As a result, excessive taxes will be able to influence the economy as a whole.
If we assume that Italy will become the next country that will require the help of international creditors, it is not known whether the European Salvation Fund will be enough to cope with this task. In May of this year, Italian banks received more than 272 billion from the ECB. euro loans, and if you add the country’s current debt to them, it becomes obvious that 500 billion remaining. euro of the European stabilization mechanism and approximately 200 billion. the euro of the European financial stability fund will be too few.