What solutions are offered for Italys economic woes?
The state of the economy and fears over job security were major issues with voters. When he came to power in 2001, Mr Berlusconi made much of his credentials as a successful businessman, promising reforms that would ensure the country’s future prosperity. Official figures published in March showed that the Italian economy did not grow at all in 2005. It has grown by a meagre 0.8% a year on average since Mr Berlusconi took office in June 2001. The new central bank governor, Mario Draghi, said recently that the economy had “run aground” since the 1990s. Italian manufacturers are being hit hard by competition from East Asian exporters; the country’s budget deficit remains in breach of EU rules; unemployment among the young remains stubbornly high; household debt is rising. Mr Berlusconi’s government blamed the international economic situation for Italy’s sluggish performance, and promised to stimulate growth by cutting income taxes. It also promised to ease banking regulations, reduce fis
