Italian lessons

Italy is looking ever more like the sick man of Europe. The country is officially in recession following two quarters of negative growth. Now the economic gloom seems to be spreading to consumers – previously the country’s most resilient sector. Consumer confidence fell in June to the lowest level in ten months. What can the government do? Not much. It has no room for further fiscal stimulus, since its deficit is already well over the limit in the Stability and Growth Pact. Nor is there much it ...