Italy’s Recipe for Coming out of Debt Crisis: Reform Packages

Abstract

The crisis that came about in Greece in the year 2009 took the European markets under control in a short time and turned into Euro Debt Crisis. Among the economies that are swept into recession by the crisis, Italy is the leading economy. Political depression combined with the shrinkage recorded in its economy dragged the country into chaos. In the fast spreading of the crisis in question, problems created especially by Italy’s own inner dynamics are regarded as to have impact. In that context, following the resignation of Berlusconi in the year 2011, Mario Monti, Enrico Letta and lastly Matteo Renzi Government that has been in the office since the year 2014, has emphasized the necessity of permanent and radical reforms and taken steps towards this direction.Here in this study, it was studied how effective the reform packages consulted by the three governments that have been changing since the year 2011 in solving the structural problems of Italy and saving it from the debt crisis. In addition, the sufficiency of the reform packages that were put into practice were analyzed and alternative solution offers concerning what should be done were proposed.