Monday, August 8, 2011

Italy's Economy and You

Is Italy broke? Bankrupt? Ready to default on its public debt? Yesterday the European Central Bank promised to purchase some of Italy's debt in the form of its government-issued bonds, and this helped trading on the national stock exchange (the Milan Bourse) today. A few days ago the prime minister announced that a series of not-too-drastic economic reforms slated for 2014 would be moved up to 2013. As many of us see it, undertaking these cuts in spending in 2012 would be better, but that may be too soon logistically. There's no avoiding reality: The situation is serious, and a slight increase in the national value-added (sales) tax may be the next step - probably from 20% to 21%.

Will any of this have any significant effect on you as a visitor to our sunny shores?

No. Italy has not (yet) reached the point of actual default as happened in Greece and our great attractions - from the Alps to Sicily - still await you.

No comments: