Eurozone Watch has two articles about Germany and Italy that offer support for an optimistic view of the European economy. For a start, Sebastian Dullein argues that a comparison of Germany today and the US after the early 90s recession shows that Germany might be on the brink of a productivity surge. Dullein argues that [...]

As Manuel points out in the accompanying post, Romano Prodi’s resignation as Italy’s Prime Minister is a rather sudden and dramatic, but scarcely unexpected, development. The immediate political crisis may be resolved as rapidly as it appeared, but again as Manuel indicates it may only serve as a prelude for further things to come, and [...]

Well as almost everyone must surely know by now, Romano Prodi’s government resigned earlier in the week. The present situation is still far from clear, with President Giorgio Napolitano holding urgent consultations with the various interested parties even as I write. Since my interest in Italy is largely an economic one (see accompanying post [...]

Actually, it’s racist, revisionist, and revanchist Italians. But we’ll get to that.
Short version: Italy and Croatia have just had a brief but bitter diplomatic dispute over statements made by Italian President Giorgio Napolitano and Croatian President Stipe Mesic. There’s not really a good or bad side here, either; both nations seem to have [...]

A couple of weeks back I had the pleasure of seeing Alessandro D’Alatri’s recent film La Febbre (Fever). As the reviewer says (Italian link), this is a ‘normal’ (everyday) film, not a great one, even if it does include one or two memorable moments, like the scenes shot along the river bank, [...]

In Italy people can choose to assign a small amount of their taxes, 0.8 percent, to a favourite good cause, the so-called otto per mille*. This contribution either goes to the Catholic or Lutheran Churches, or the State. The State is supposed to use the money for well-defined humanitarian, environmental and cultural causes. At [...]

Italian Finance Minister Tommaso Padoa-Schioppa is going to be a man of his word (and not follow in the path of that other European political leader who was lying about his budget in the morning, in the afternoon, and at night). He assures us of this:
Mr Padoa-Schioppa was adamant any adjustments to the budget, which [...]

The OECD estimates the current potential capacity growth rate of the Italian economy at 1.25% a year. Actually I suspect even this very low number is over-optimistic. Growth since 2002 has been as follows: 2003 - 0.1%: 2004 - 0.9%: 2005 - 0.1%. To be sure forecast growth for this year is somewhat higher, [...]

John Kay had an article in the Financial Times earlier in the week, and this seems to have caused quite a ripple around the blogsphere (Eurozone Watch, Economonitor, Claus Vistesen at Alpha Sources). The article was about whether or not it was technically possible for Italy to leave the Eurozone. (Update: Sebastian has a [...]

At the time of writing Berlusconi is still filibustering, but it seems to be simply that, rather than any serious attempt to derail the outcome of the electoral process. Meantime the financial markets are adapting themselves to the new reality.
I too am gearing myself up for what looks like being a very bumpy [...]