Failure to Pay Debt Risk Italia

Italy is believed to be in trouble with debt, even at risk of default, the alias failed to pay. The opposite condition would be experienced by Spain. Although the center desperately to overcome debt,it is believed Matador State avoid the risk of default.

PM Italia, Silvio Berlusconi

Assessment was made of the leading economic research institutes from the UK,Centre for Economic and Business Research, quoted by BBC news station.In a report published Thursday,August 4, 2011,CEBR forecast describes the composition of economic growth and Italian debt,which was considered very alarming.

Spagetti country's economic growth in the first quarter of this year only by 0.1 percent and is expected to grow more difficult wallau Italy tried to cut the budget and determined to erase the deficit by 2014.In contrast,the Italian government debt continues to swell.
According to CEBR calculations, Italy's debt will continue to rise - that is 128 percent of annual output to 150 percent of GDP in 2017 to come. This will happen when the Italian bond yields over six per cent and economic growth remains stagnant.
"Even if interest rates fall to 4%, the rate of economic growth was so sluggish that we see the debt-GDP ratio is still at 123% in 2018," said Doug McWilliams,
CEBR assessment is quite different from the statements of Prime Minister of Italy, Silvio Berlusconi. To parliament on Wednesday,Berlusconi stated that they are still strong domestic economy and the national banking system remains healthy.
Conversely, CEBR gave a positive assessment to the Spanish. Although the government is struggling to anticipate the rise in bond yields and seeks to reduce the budget deficit. According to CEBR,even in a bad situation even Spain's debt ratio will not be more than 75 percent of GDP."There is a chance that Spain will avoid a default," the CEBR exposure.
"Realistically, Italy at risk of default, but Spain can avoid that risk," said McWilliams