The Tourist Newspaper - Cancun Today: Italy adopts new austerity measures

Italy adopts new austerity measures
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cancuntodaynews on 15/11/2011 15:07:00

The country  cannot afford to pay an interest rate of 7%.

Noticias de Yucatán | Diario La Verdad
Rome, Italy
Douglas J. Elliott, who worked as an investment banker for two decades, is a
fellow at the Brookings Institution. We may be nearing the finale of the Euro
crisis that has been building for at least a year and a half. What Italy does
now, and how governments and markets respond, may determine whether we have been
watching a tragedy or something less serious.
Italy is the domino that cannot be allowed to fall over, because it would risk
knocking over too much else. Yet it is also so large that saving it requires
huge financial resources. Italy has well over $1 trillion of government debt,
about 1.2 times the annual output of the whole nation.
It cannot afford to pay an interest rate of 7% or 8%.
Italia adoptará medidas de austeridad
Douglas J. Elliott, quien trabajó como banquero de inversión durante dos
décadas, es miembro de la Brookings Institution. Tal vez estemos cerca del
final de la crisis del euro que se ha ido por lo menos un año y medio. Italia
lo hace ahora, y cómo los gobiernos y los mercados responden, puede determinar
si hemos estado observando una tragedia o algo menos serio.
Italia es el dominó que no se puede permitir que se caiga, porque se correría
el riesgo de tumbar muchas otras cosas. Sin embargo, son intereses altos y no
pueden darse el lujo de pagar el 7% o el 8%.