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Volume 53, November/December 2018, Number 6 · pp. 316-319


On the Risk of a Sovereign Debt Crisis in Italy

Oliver Holtemöller, Tobias Knedlik, Axel Lindner

The intention for the Italian government to stimulate business activity via large increases in government spending is not in line with the stabilisation of the public debt ratio. Instead, if such policy were implemented, the risk of a sovereign debt crisis would be high. In this article, we analyse the capacity of the Italian economy to shoulder sovereign debt under different scenarios. We conclude that focusing on growth enhancing structural reforms, would allow for moderate increases in public expenditure.


This Intereconomics article is available for free at this page after an embargo period of two years. Reading it before December 2020 is possible via SpringerLink or in the next library.