Insert Topic of your Diary Here |
Name and Banner ID: | Angie Castillo 000548488 |
Tutorial Group: | |
Diary Entry 1 |
Date of Input | Italy’s approach to the growing crisis in Europe 31st October 2011 |
Reference of the source(Harvard style) | John Hooper. (2011). Debt crisis: Silvio Berlusconi unveils reforms to avert Italian crisis. vailable:http://www.guardian.co.uk/world/2011/aug/07/debt-crisis-berlusconi-italy-crisis?INTCMP=SRCH. Last accessed 11th Oct 2011. R.A. (2011). Italy on the brink. Available: http://www.economist.com/blogs/freeexchange/2011/10/euro-crisis-2. Last accessed 11th Oct 2011.Shane Fitzgerald. (2011). Europe's Deepening Crisis . Available: http://www.iiea.com/blogosphere?theme.id=1&gclid=CKrV357WtKwCFcQf4Qodw1c_mg. Last accessed november 2011.|
Discussion of the content of the article |
The article gives an outlook on how Italy is taking measures to protect its economy from the growing concerns in the Europe zone after the collapse of Greek economy. also how important it is for Europe’s central bank to control the success of the euro currency.
After an earlier alert in July the Italian government rush to parliament to set ofmeasures that targeted to cut £42bn from the budget deficit and allow Italy to start paying off its €1.8tn public debt in 2014. The prime minister is looking to introduce further reforms to regulate the Italian economy. Also article focus on the role of the ECB and how important its presence is for the survival of the Italian economy. The European central bank has to come up with a form of cuttingdown government debts across Europe as that was is intend it to do so.
Even though the prime minister predicted that Italy will not be as affected by the 2007/08 crisis like the other EU countries, the Italian people are still not convince of the measures that the government has taken will be enough. And though the banks pull through in 2009, Italy’s GDP dived 5.2%; this demonstrates thatItaly has taken a blow from the crisis and how companies entering the Italian markets are taking further actions when protecting the investment and this is dragging down earnings through all industries. However another point was made that Italians have taken a step back into the crisis and continuing having an underperforming economy conforming to high inflation and rapidly disappearing savings, theyare not demanding any change like the other countries that find themself fast approaching to the crisis like Spain and Greece.
The question left is why Italy has been left behind by its main opposition Germany when both countries have similar demands. This was explain in a very simple style, Italy reduce its rates to control its growing debt while Germany introduce reforms to protect itseconomy and also reduce any future debts which means that Italy became dependent of the ECB and the flexibility it has to subside in debt economies with a flow of cash to sustain the economy however in Italy case they haven’t manage to reform their economy and now without the flexibility to adjust their exchange rates and sell their bonds or they will be heading straight into a crisis that will spiralinto massive chaos not only in the euro zone but also in all of the recovering world markets.
Critical review of the content of the article |
After carefully analysing the two articles, there is a clear prospect of the Italian approach to sustain its drifting economy, and how it depends on Europe’s central bank to continue to rescue their economy from their growing debt without havingincrease inflation in their economy. From the data provided I can see that Italy hasn’t implied a strong economic plan that will attract FDI and further interest in Italy. The growing unemployment and the decrease salaries has a has a major factor in the fragile state in which the economy is in never the less the government needs to protect infant industries because they have a large stake in...
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