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JUL 18, 2013 - The Economist

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The Italian government: Shirtsleeve time

ENRICO LETTA likes to note that he has been prime minister of Italy for just 70 days. He needs many more if his left-right coalition is to fulfil its ambitious agenda. At its head is constitutional reform, perhaps a surprising priority given that Italy’s woes are primarily economic. Its budget deficit is under control, but the public-debt burden is continuing to rise, to over 130% of GDP by the end of the year. Above all, GDP stubbornly refuses to grow. This year in real terms it will be barely above the level of 1999, the year when Italy joined the euro. Labour productivity has hardly risen ... Read More

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