Italy's sheer size, dysfunctional politics and faltering economy are a bigger headache for Europe's crisis managers than even Greece, which represents only 2% of the euro-zone economy, compared with Italy's 16%. And the country's €2 trillion public debt makes it too big for Europe's bailout funds to rescue, should Italy ever lose access to bond markets. By contrast, businesses are fleeing Italy as the country's meager growth and difficult business environment drives away investment. Over the last five years, Italy attracted an average of just $12 billion of foreign investment a year, compared with $37 billion for France and $66 billion for the U.K. Multinationals bring huge benefits to Italy; they make up less than 1% of all companies, but represent 25% of R&D spending. "In a crisis, you need to be agile and in Italy that isn't easy," says Sami Kahale, head of Procter & Gamble's Italian business.
Source: http://online.wsj.com/article/SB10001424052702304906704579110682389441304.html?mod=fox_australian
No comments:
Post a Comment