The shorter John Foot article

Berlusconi\’s not to blame for Italian problems.

But we should blame him anyway.

There is no doubt that the Italian economy is in deep trouble. The huge state debt has been in place for decades.

Right, predates Silvio then.

The sooner Berlusconi goes, the better, although the deep structural problems inherent in the Italian economy and its self-perpetuating political caste will remain.

See?

2 thoughts on “The shorter John Foot article”

  1. The view from Italy is that because a) Italy doesn’t run a primary deficit and b) has extensive private savings and c) a quite old fashioned economy in many ways – cash in hand, unofficial etc it is actually surprising well placed to tell the banks to f**k off if they raise rates too far, and to muddle though by themselves.

    It occurred to me this morning that Tremonti and Berlusconi may have hatched their little spat on purpose to provoke exactly what has happened , knowing that nothing much can happpen in order to get force party agreement on spending cuts which everybody knows should happen but nobody is willing to vote for , a by-product would be that it might hasten a situation in which Italy could default, decouple and devalue its way out of trouble as it always has.

    Berlusconi may not be everybody’s cup of tea, but he is not stupid.

  2. Personally I suspect that when Berlusconi eventually goes and it is back to politics as usual with unstable coalitions which don’t last 2 years things will be much worse for Italy as the uncertainty will mean higher interest rates.

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