What Ails Italy: The Competitive Issue of the Italian State American Journal of Economics, Finance and Management. Vol. 2, No. 5, 2016, pp. 49-57

Italy faces a most challenging global financial and economic crisis since the end of World War II. For an economy that grew at a rapid pace between the 1950’s and the 1980’s, Italy has seen slower growth in the last twenty years. Italian policymakers are facing a series of problems that include a contracting gross domestic product (GDP), large unemployment, especially among its young people, high government deficits, large governmental borrowing along with high interest rates, and a divisive north-south economy, to name a few. Adding to these dilemmas are its recent recessionary periods, which some liken to a depression, a decrease in domestic demand, and an exodus by highly skilled younger people for better employment prospects in other countries. Italian policymakers are trying diverse solutions to these complex problems, but are worried that they may not be enough to solve its crisis.