Plans by the Italian government for a deficit of 2.4 % instead of pursuing the adjustment path agreed with the EU have led to a sharp increase in the yields on Italian debt, with the yields on ten-year bonds rising above 3%. Italy seems to be only one step away from such an explosive feedback loop.
Daniel Gros analyses the state of regional convergence within the European context. He finds that different country groups have had quite different experiences following the financial crisis and that in most cases there has been little convergence across regions within countries. More importantly, the seemingly permanent differences in regional per capita income are for some countries mainly the result of differences in occupation ratios.
LUISS Open further explores inequality, with a contribution by Andrea Brandolini, Romina Gambacorta e Alfonso Rosolia focused on the trends in Italian economy
The European Commission’s slap on Italy’s wrist does not take into account a few factors: the robustness of our budget surpluses, the generous contribution to the European home and those advantages that the Euro has granted to the reference country in the Old Continent, that is to say Germany. These are the elements that Brussels should consider before sending its next letter