There is little that Italy’s government can do to prevent its debt ratio from rising. For a number of reasons, not least of which is its membership of the euro-zone, the three paths to debt reduction – faster GDP growth, fiscal austerity, and higher inflation – are either closed off or likely to be ineffective. Accordingly, we think that Italy will eventually be forced into a debt restructuring or outright default.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services