Bloomberg (July 12)
In Europe, contagion is spreading from Greece. “Exploding bond yields in Italy and Spain brought the crisis closer to the heart of the euro area.” Europe’s leaders now look prepared to reconsider measures they had previously ruled out, such as buying back Greek debt at a discount. Whether they can avert disaster remains to be seen. Italy felt the brunt of the expanding crisis as 10-year bonds rose 326 basis points over Germany’s, “a euro-era high.”
Wall Street Journal (June 16)
More “Fukushima fallout” landed in Italy where voters “rejected government efforts to restart the domestic nuclear industry.” The Wall Street Journal thinks this is a bad decision. Nuclear technology is “advanced and safe.” Instead, Italy will be dependent on other European nations for electricity. “That’s their choice, but it doesn’t mean it’s a wise one.”
Wall Street Journal (January 6)
“Looks like it’s almost time for another change of leader in Tokyo, which is becoming the Italy of Asia.” The WSJ makes this prediction based on Prime Minister Naoto Kan’s divisive attempts to force Ichiro Ozawa out of the DPJ and increase the consumption tax. The newspaper also makes another unwelcome international comparison. The next Prime Minister will “have to tackle Japan’s problems before unpleasant outcomes are forced upon it. Without cuts to entitlements and tax cuts to promote growth, Tokyo will continue turning into Athens.”
“Looks like it’s almost time for another change of leader in Tokyo, which is becoming the Italy of Asia.” The WSJ makes this prediction based on Prime Minister Naoto Kan’s divisive attempts to force Ichiro Ozawa out of the DPJ and increase in the consumption tax. The newspaper also makes another unwelcome international comparison. The next Prime Minister will “have to tackle Japan’s problems before unpleasant outcomes are forced upon it. Without cuts to entitlements and tax cuts to promote growth, Tokyo will continue turning into Athens.”
Economist (November 4)
First elected prime minister in 1994, Silvio Berlusconi has become the longest serving leader in the G8. He has proved a shrewd fighter, weathering numerous scandals and crises. For Italy, however, his extended reign has created “a comedy that has gone on too long.” The Economist believes change is needed: “what Mr Berlusconi really offers is not stability but stagnation. Far from steering Italy skilfully past the many dangers that confront it, his government has become almost totally paralysed.”
Tags: Berlusconi, G8, Italy, Stagnation
