Italy risks economic ‘vicious circle’

Italy’s economy risked a 'vicious circle' of weak growth and lack of confidence, the governor of the Bank of Italy Ignazio Visco warned on the 31 October 2012 as unemployment rose to its highest level for 13 years while its recession deepened.

More than 35% of young Italians were out of work as factory closures, bankruptcies and public sector cuts fuelled a nationwide backlash against the austerity policies of Mario Monti’s technocrat government ahead of general elections early in 2013.

ESO: Background information: OECD urges Italy not to backtrack on reform http://www.europeansources.info/record/oecd-urges-italy-not-to-backtrack-on-reform/

ESO: Background information: Confindustria forecasts recession into 2013 http://www.europeansources.info/record/confindustria-forecasts-recession-into-2013/

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