Why is the economy of Italy keep dropping??

Question

I used to remember a time when Italy had one the most growing economies in Europe. Now i go on the CIA factbook and i see this:

The economy continues to grow by less than the euro-zone average and growth is expected to decelerate from 1.9% in 2006 and 2007 to under 1.5% in 2008.

Whats causing all this ??

Answer 1

Because of undeclared work that grows every year.

Answer 2

Well, I live there 3 mths., out of the year.   And I can tell you that Italy took a hit in 2002 when they took on the Euro Monetary. What happen was that when Italy converted from the Lira to the Euro, people cheated on the conversion.  Eg... Let's say a loaf of bread cost at the time 1Lira, (at the time equivalent to 50 cents.) They changed it over to 1Euro (1 dollar at the time) So everything doubled and salaries stayed the same. It should have changed just the number, instead they just changed the Monetary symbol. At the time other Countries had people from the Finance Dept., of their Countries go into stores and business and regulate the price so that this wouldn't happen and people wouldn't be taken advantage of.  The problem is nobody ever did this for Italy. So basically businesses took advantage of the consumers and it has been hushes ever since. They are now realizing that this is a problem and are trying to regulate it.  The problem is that the damage has been done.  So right now the govt is working on a plan, but no one does anything about it.  There is a saying in Italy, until you don't touch the bread, then everything is ok., even if people are starving and there is a crisis with the govt. Once you touch the bread, when people can no longer afford bread, then that is when the citizens declare war on the govt. Sad I know!!!! And it's just going to continue to get worse.