Seeking a way out of the crisis: The case of Italy

Having originated in the USA, Global Finance Crisis, which is a direct result of the process of financialization of capitalism, has evolved into Euro-debt crisis in Europe in a short time. Among the European countries drawn into a struggle for existence, Italy seems to have had the most painful experience. The country has been experiencing a process of economic instability due to the Euro-debt crisis as well as the chaotic atmosphere as a result of the lack of political authority, and structural problems resulting from the country's inner dynamics. It is tougher sledding for Italy, differing from other European countries due to its high debts in excess of its national revenue of 2 trillion dollars, to recover from the crisis. Indeed, European Central Bank's rescue fund for European countries suffering from the crisis was not sufficient for the rescue of Italy. Diverse action plans needed to be implemented to pull Italy through the debt-spiral dating back to 2011. In this context, what formed the basis for the struggle for relief was Italian government's "protective policies" to secure its strategic sectors and "reform packages" brought into force due to a need for comprehensive transformation of economy as well as the assistance provided by the European Central Bank. In this regard the purpose of this dissertion is to examine the effects of -debt crisis on Italian economy and to lay emphasis on the aggravating role of problems resulting from the inner dynamics of Italy in the expansion of the crisis. It is also aimed to discuss to what extent the crisis relief strategies employed by European Central Bank and Government of Italy have been successful.