Italy is in trouble – again

Italy is back in recession, with the economy shrinking in both the first and second quarters of 2014. It marks Italy’s third recession since 2007, and “will have a profoundly demoralising effect on a nation that thought the worst was over”, says The Economist.

“It is tempting to think of the Old Testament idea of seven lean years following seven fat years,” says James Mackintosh in the Financial Times. But Italy didn’t have the fat years.

Its economy has barely grown for two decades and is currently the same size that it was 14 years ago. Without growth, Italy [...]

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