Why is the Italian economy dropping?

Question

It has one of the lowest growing rates in EU. What caused this?

Answer 1

I'm Italian, so I can explain you better: our economy is dropping because of the mafia ('ndrangheta, camorra, etc...), but also because of the POLS!!! At the moment, our governement has fallen and the next elections there will be in April (in short, there's nobody who manage our country now).

That is a great problem. But the biggest problem is due by the union of governement and mafia!!! A lot of mafiosi are at the governement and they do everything to earn money and then to keep it for themselves; at the moment we have a great problem with rubbish: because of the mafia!!!!

In short, our governement is not abiding and our economy is poor.

Answer 2

There are too many peoples in politic thinking only to their power and money, this means Mafia, 'Ndrangheta and Camorra. In five years they reached an enormous personal wealth. That money instead being used for Italian economy, is in their pockets. They operated without care for historic centers, agriculture (primary), industry (secondary), tourism, only services and not so much (also why quiet all services belong to them). Services doesn't create wealth. Only primary and secondary can. But the paradox is that a large part of italian people depends from their words, 'cause they get near all the information system, and more, they continue promising the moon for all. They show luxury, vogue, good and beautiful things, and this makes a fatal attraction near the people. Italian people hasn't learned yet, that if we want stay well, need to work, everyone and hardly, and overall to pay taxes. Taxes are paid by poor people 'cause their salaries are controlled. But people who get some power or wealth, they always try to avoid them or to pay low. Every year we discover hundreds of those person who were inexistent for tax authorities, total tax evaders! Million of Euros stealed! Only conscience, responsibility, hope and the whole European support, can help us!!!

Answer 3

Taxes too high which deprime consumes, yes the govt has reduced taxes on enterprises but only investments cannot relaunch the economy.

A low flexibility on the job market, former govt (Berlusconi and his center-right coalition) has goofy tried to do something but it has just caused insecurity and "shakiness".

There's very low research level although our researchers are amongst the better in the world (the engine of the shuttle are projected at Alenia Spazio, 12 kms from my home in Turin). The education system is laxist and surely non-meritocratic, people view the college like a 3-5 yrs holiday.

There are no plain of long term development (look at the case Alitalia).

I dont think small and medium enterprises to be a problem. Italy is a post-industrial country, so flexibility and innovation can be bring forward by small companies and delivered within the sistem by external scale-economies.

It's sad to admit but me and many others are thinking the only way to neaten the country is 5-6 yrs of strong govt and strategy directed economy.

Answer 4

I have a strange theory ... I believe it is due to the fact that small and medium enterprises in Italy are mainly concentrating on domestic business. Both for sales and sourcing - this is automatically limiting the growth potential and also creating cost issue.

As Italy is largely relying on the base of SMEs this is creating a large problem for the Italian economy ...

Answer 5

ciao,i am an italian boys (13 years old) and i know that in italy the economy now it isn't great.....here in italy ( i see tg) we have to pay many taxes.....and how do we can buy?.......here in italy i see much people that pay in black because (I repeat)  the taxes are very high!!!!!!!!!

I REMEMBER  that in evry world there black work

Answer 6

Abroad this is the image of Italy....ndrngheta, camorra...etc...

THIS ISN'T THE TRUE IMAGE!!!!!!!!Economy isn't dropping so much...And remember that it's THE BEST PLACE IN THE WORLD!!!! For weather, food, parks, nature...

Black work or fiscal evasion is spread all over the world! not only in Italy!

Answer 7

Tourism has dropped by 50% ,the Euro has gone to high and they have to many turist traps,some one has to wake up and change things around .

Answer 8

GOOD QUESTION for our politicians.....which I am sure they will tell you everything is great!!!!!

tutti mafiosi!!!!

Answer 9

because there are a lot of problems, economic grow is steady on zero level, but Nord italy has a good economic grow while sud italy hasn't it,there are too taxs, too fiscal evasion, too costs for local agency such as "provincia" and "comune", too flexibility workers, and too black work (sunken work).

Answer 10

The Italian Economy, one of the liveliest in Europe, is based on the initiative of a very large number of small and medium Business concerns. After a lengthy period of low growth (GPL 1,0-1,5%), with a negative -0,5% growth at the beginning of 2005, it rapidly picked up and peaked in January 2007 at nearly 3,0%. The arrival of the Prodi, left wing, Government, with it’s tax scares, the strengthening of the € over the $, which hurt exports and the high fuel costs, which hurt productivity, have since inverted this tendency and we are now, with the last quarter at ca. +0,4%, with a yearly average of 1,9%. The entire G7 area is  showing alarming signs of a possible recession, and Italy, alas, has the worst results. One could blame this entirely on the two years of “austerity” introduced by the Prodi left wing government, but that would be too simple. The “Italian problem”, is energy. Italy is the 7th World importer and the 8th World exporter, in between lie production and distribution costs, i.e. high costs for the conversion of raw materials into finished products. In recent years this “gap” between Italian production costs and those of it’s neighbours has been growing, making everything even worse. Couple this with the dramatic fall in “competition” (Italy fell from 40th to 47th in five years), basically due to an obsolete, politically biased Trade Union movement (128th), and the top heavy bureaucratic system (92nd) and you have a critical situation. Can Italy overcome this? A cynic would say no, with rising competition from China and India (who push oil costs up) things could get worse. An optimist would say yes, Italians are creative, inventive hard workers, they’ll find a solution. If the Centre Right  wins the next elections (April) and Berlusconi stops paralysing the country with his personal affairs, Italy should make it. It’s still a great country with plenty of potential.

ps forget the "criminal element", dealing in National Security I can assure you that Italy is no better or no worse than the rest of Europe.

pps Fe Fo Fi Fum did I sense the presence of a left wing voter (-1)?  I made  an apolitical analysis any colleague of mine would second, be he/she left, right or centre. You might like it or not, but the present/just past Government took the wind out of the fragile recovery's sails. Right? Wrong? To insist on  putting IMF accounting right before relaunching the economy?  Ask the Italians on April 13-14th. I'm just the messenger (Journalist and Polit-sociologist).

Answer 11

Confusion reigns.... and Italian politicians and the mafia keep it that way. It is the best and only way they can stay in power.

There is always a select few that reap profits when the mass lives in chaos.

Poveri loro che si abituano a subire….

Answer 12

america is dropping faster then italy.