Government Debt

Government debt

The government debt is very important and it's equal at 120.7% of the GDP of the country. The level of debt is one of the most important in the UE and after the crisis of 2009 the debt to GDP increases by 10.3% between 2009 and 2010.

Rating agencies

The rating agencies decreases the note with a negative perspective and the table below resumes the notes of the most important agencies

Rating agencies The Note

Standard and Poor's BBB+

Moody's Baa2

Fitch Rating A-

The Italian debt owner

The Italian debt is owed by:

The large party of the debts which is 65% is owed by the domestic institutions such as (Italian bank, Insurances...). The 27% of the debt is owed by the European Union and the last 8% is owed by Asiatic countries.

Currency used and its strengths

The government of Italy is EURO. It was adopted in 1999.

After the creation of the Euro zone Italy became the fourth most important shareholder with a part of capital equal to 12.5%.

Strength of the currency

1. Price transparency

2. Guarantee law interest rate

3. Strength the Europe weight in the International organizations like IFM and World Bank

4. The elimination of the transactions costs

Main industries and source of income

Italy economy drives its incomes from various sources such as Services, Energy and industry and the agriculture.

The most important income source is the Services which employed 65.1% of the labor force. For the industry and the agriculture they employed 30.8% and 4.1% of the labor force.

Inflation and fiscal stability

The inflation in Italy is in average equal to

The inflation in Italy is in average is equal to 3.044% and we can see that inflation decreases from 3.2% to 2.51% in that the last trimester.

Current issues

Italy faces current issues like immigration, corruption... The illegal immigration has incredibly increased after the Arab spring and the public opinion seems increasingly worried about the lack of public order which is not