Is Italy Next?

That’s what a recent article in Deutsche Welle suggests:

Eurogroup President and Luxembourg’s Prime Minister Jean-Claude Juncker had a good reason for last weekend’s warning that Italy could be the next country to fall prey to the debt crisis that is engulfing Greece. Italy has the second highest public debt in the eurozone, after Greece. Italian public debt is equivalent to some 120 percent of its gross domestic product.

Despite this, Prime Minister Silvio Berlusconi is confident there is no comparison with Greek circumstances. On Tuesday he told the Italian senate, “We are all convinced that there should be no new borrowing. The government will not transfer the costs of this international crisis to the next generations. Our children will not pay for today’s difficulties.”

Stay tuned.  You can read the full story here.

Tags: , ,