ASSESSMENTS

The European Crisis Hits Italian Companies

Aug 23, 2013 | 20:36 GMT

 The European Crisis Hits Italian Companies
Cranes at a construction site in Rome.

(ANDREAS SOLARO/AFP/GettyImages)

Summary

Economic conditions in Italy are likely to remain fragile in the coming years, mainly as a result of declining economic activity, a lack of competitiveness and tightening credit conditions. These factors are hurting domestic companies, which are facing increased financial problems. Because of the perennial political instability in Italy, the country will struggle to find sustainable solutions to these problems.

Tightening credit conditions in Italy will remain a key political and economic problem for the foreseeable future....

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