Italy "One country is widely viewed as the most acute of all cases of European dysfunction. Since the introduction of the single currency, Italy has posted the worst economic record of any state in the Union: twenty years of virtually unbroken stagnation, at a growth rate well below that of Greece or Spain. Its public debt is over 130 per cent of GDP. Yet this is not a country of small or medium size in the recently acquired periphery of the Union. It is a founder member of the Six, with a population comparable to that of Britain, and an economy half as large again as that of Spain. After Germany, its manufacturing base is the second biggest in Europe, where it is runner-up too in the export of capital goods. Its treasury issues form the third largest sovereign bond market in the world. Nearly half of its public debt is held abroad: the comparable figure for Japan is under 10 per cent. In its combination of weight and fragility, Italy is the real weak link in the EU, at which i...