Many economists consider growing Italy’s public debt the ticking bomb at the heart of Europe. Even before the coronavirus pandemic, the country's loan dependency was rather high, and the coronavirus pandemic only worsened the situation.
According to the forecasts of the Italian Finance Ministry, Italy’s economy will contract by about 9% in 2020, while the public debt will reach 158% of GDP. Taking into account the fact that the Italian economy is the third-largest in Europe, this mammoth debt could become a serious problem for the bloc. Besides, the economy is very unlikely to recover quickly. Analysts say that even if it advances by 6% next year, it could hardly improve the overall outlook. "Even that partial recovery looks very ambitious and challenging," Angelo Miglietta, professor of economics and management at IULM University in Milan, said. He also noted that EU money would take time to revitalize the economy. It seems that the path to full economic recovery will be long and thorny.
Although Rome has been included in the multi-billion-dollar European plan to boost the economy, this will not help significantly brighten the financial prospects in the near future. Even with EU financial support, the Italian economy will take most of the coming decade to stabilize. Yet, there is no guarantee that it will continue to rise.
