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> Italy’s economy is 1.5% smaller than it was in 2007 That is impressively bad for a developed western economy. I suspect the country would be in severe troub

> Italy’s economy is 1.5% smaller than it was in 2007 That is impressively bad for a developed western economy. I suspect the country would be in severe trouble if it wasn’t for their membership in the EU single market.

dh2022 3y ago
That is what is keeping them afloat (along with Greece, Romania, Bulgaria and Hungary to some extent).
gloryjulio 3y ago
Check Canada out, especially considering the strong growth of the US economy: > Firm says Canada per-capita GDP fell a whopping 4.4% in 3Q. On WSJ wires: https://twitter.com/paulvieira/status/1737948835349991818 https://twitter.com/paulvieira/status/1737948835349991818
okeuro49 3y ago
> their membership in the EU single market. Which is likely negated by the membership of the Euro single currency. > The German economy was relatively prosperous by 2012, and European monetary policy was far too tight for weaker economies. Portugal, Italy, Ireland, Greece, and Spain all faced high debt, high interest rates, and high unemployment. This time, monetary policy was too tight rather than too loose. The only constant was that the euro continued to work in favor of Germany. https://www.investopedia.com/ask/answers/09/euro-introduction-debut.asp https://www.investopedia.com/ask/answers/09/euro-introductio... They would be far better served by a single market, without the Euro.
- ZeroGravitas 3y ago
  Or a Euro with greater fiscal union. This is an article that explores one way to achieve this given political reality, that the "North" would be sending money to the "South" if implemented, yet both North and South benefit from the Euro system continuing: https://www.cambridge.org/core/journals/european-review/article/bargaining-the-euro-making-an-eu-fiscal-union-politically-acceptable/9C6AB56492422E6046BB40FF9AC1076A https://www.cambridge.org/core/journals/european-review/arti... > An EU Fiscal Union is being discussed as a way to avoid future euro-crises and guarantee the stability of the euro. So far, however, it has proved politically impossible, as EU countries are unwilling to give up their sovereignty on fiscal policy. This article develops a bargaining model that sheds light on how fiscal pooling could become politically acceptable. The model differentiates between the ‘South’ (net beneficiaries) and the ‘North’ (net payers). We find that fiscal pooling should be done via a combination of the fiscal instruments with the highest fiscal multipliers. Instead of a single Fiscal Union, we therefore propose a combination of fiscal pooling instruments which, together, add up to the sufficient level of fiscal integration.
  - okeuro49 3y ago
    > Or a Euro with greater fiscal union The creation and response to the sovereign debt crisis shows that this won't happen. It will require a political union as well. German taxpayers aren't going to pay for Greek pensioners.
  - imtringued 3y ago
    Germany already complain about joint development programs that involve 1 billion in loans to India because of their $75 million moon mission making them somehow more advanced than ESA.
    - macnetic 3y ago
      ESA is an independent entity from EU.

dh2022 3y ago

That is what is keeping them afloat (along with Greece, Romania, Bulgaria and Hungary to some extent).

gloryjulio 3y ago

Check Canada out, especially considering the strong growth of the US economy: > Firm says Canada per-capita GDP fell a whopping 4.4% in 3Q. On WSJ wires: https://twitter.com/paulvieira/status/1737948835349991818 https://twitter.com/paulvieira/status/1737948835349991818

okeuro49 3y ago

> their membership in the EU single market. Which is likely negated by the membership of the Euro single currency. > The German economy was relatively prosperous by 2012, and European monetary policy was far too tight for weaker economies. Portugal, Italy, Ireland, Greece, and Spain all faced high debt, high interest rates, and high unemployment. This time, monetary policy was too tight rather than too loose. The only constant was that the euro continued to work in favor of Germany. https://www.investopedia.com/ask/answers/09/euro-introduction-debut.asp https://www.investopedia.com/ask/answers/09/euro-introductio... They would be far better served by a single market, without the Euro.

ZeroGravitas 3y ago
Or a Euro with greater fiscal union. This is an article that explores one way to achieve this given political reality, that the "North" would be sending money to the "South" if implemented, yet both North and South benefit from the Euro system continuing: https://www.cambridge.org/core/journals/european-review/article/bargaining-the-euro-making-an-eu-fiscal-union-politically-acceptable/9C6AB56492422E6046BB40FF9AC1076A https://www.cambridge.org/core/journals/european-review/arti... > An EU Fiscal Union is being discussed as a way to avoid future euro-crises and guarantee the stability of the euro. So far, however, it has proved politically impossible, as EU countries are unwilling to give up their sovereignty on fiscal policy. This article develops a bargaining model that sheds light on how fiscal pooling could become politically acceptable. The model differentiates between the ‘South’ (net beneficiaries) and the ‘North’ (net payers). We find that fiscal pooling should be done via a combination of the fiscal instruments with the highest fiscal multipliers. Instead of a single Fiscal Union, we therefore propose a combination of fiscal pooling instruments which, together, add up to the sufficient level of fiscal integration.
- okeuro49 3y ago
  > Or a Euro with greater fiscal union The creation and response to the sovereign debt crisis shows that this won't happen. It will require a political union as well. German taxpayers aren't going to pay for Greek pensioners.
- imtringued 3y ago
  Germany already complain about joint development programs that involve 1 billion in loans to India because of their $75 million moon mission making them somehow more advanced than ESA.
  - macnetic 3y ago
    ESA is an independent entity from EU.