After Greece , Italy is second biggest victim of debt crisis. There is huge political drama in the country . Silvio Berlusconi has to resign from post of Prime Minister due to financial crisis . In new cabinet , most members have good knowledge of economics. Mario Monty formed a new government that would remain in office until the next scheduled elections in 2013. He was European Commissioner and is a good economist. Italy has a very high level of debt and that is making problems for Italian economy.
Italian debt stands at about 120% of its GDP. Most people believe that picture of Italy is much brighter than Spain or Ireland. Unlike Spain or Ireland ,Italian people took very less debt. Most part of debt is on Government. Government did not spent to much in last 5-10 years but Italy saw very low GDP growth in last 10 years less than .80% .
Now first step Government has to take to reduce deficits and repay loans it took.European Union is ready to support Italy with eurozone bailout fund.
