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The Italian economy like its national carrier Alitalia are synonymous in their struggle to overcome crippling debt, yet their ailing conditions are denied by both Silvio Berlusconi and Walter Veltroni.
Since adopting the euro back in 1999 the Italian economy has been the second least competitive, and currently has the largest debt in Europe, and with its mountain larger than its annual gross domestic product an implosion is the most logical conclusion that can be drawn.
Gianni De Michelis, deputy prime minister in 1988 and 1989 has described the situation akin to the Italian economy hitting an iceberg, as “it’s gotten to this stage after years of negligent governments on both sides. Berlusconi or Veltroni? It makes no difference.”
“Italy and its economy are like the Titanic hitting the iceberg,” said Gianni De Michelis, deputy prime minister in 1988 and 1989. “
In March the government slashed its 2008 growth forecast by more than half to 0.5 percent.
The interest on the national debt is 70 billion euros a year, which works out about 1,200 euros per Italian in a country that has a burdening pension system that accounts to a huge 15 percent of GDP.
Similar to the economy the national airline is also in dire straights, as it has gone through nine government-appointed chief executives in the past 15 years and has debts twice its market value, although Berlusconi said “We cannot give up our flagship carrier” and has called on Italian businessmen to joint together.
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