World Economy

Italy Debt at Record High

Italy Debt at Record HighItaly Debt at Record High

Italy’s public debt has hit a record, at a time where the eurozone is struggling through the Greek debt crisis, DW reported. Italy is the currency union’s third largest economy and the most indebted country after Greece. Italian public debt has risen upward of €2.2 trillion in May, new data showed Tuesday–a new record for the southern European country. The new numbers from the Central Bank of Italy come at a time when the Greek debt crisis is dominating headlines and observers view ballooning public debt within the currency union with worry. Italy’s debt is now at 132% of GDP, compared to Greece’s 175%. Both countries find themselves far from the 60% debt-to-GDP ratio target set by the European Commission. The consequences of an Italian debt crisis would however be more dire–it’s the third largest economy in the eurozone. Finance Minister Pier Carlo Padoan has been criticized by opposition politicians for not being able to bring down sovereign debt, which was already at 120% five years ago.