Re: Thousands protest conditions and infrastructure in Rome
Italy is on the verge of bankruptsy .
"Root problems
Over the past decade or more, wide swaths of Italian industry have become uncompetitive on global markets, which are ever more flooded with high-quality, low-cost goods produced in Asia, the Americas, or elsewhere in Europe.
Italy, with relatively high wages and other costs and an inflexible, excessive bureaucracy, is not a low-cost production location. In past decades, before it adopted the euro in 2002, Italy was able to compensate for this by devaluing its previous currency, the lira. But now, yoked as it is to the euro — which is among the hardest of hard currencies — the devaluation gambit is no longer available. Painful internal adjustment of euro-denominated wages and prices are the only way for the country's businesses to regain competitiveness."