The THIRD largest economy in the Euro zone is crumbling around us... we think that’s nuts! It's the home to some of the world's biggest brands! Prada, Gucci, Versace, Valentino... It's also responsible for some of the worlds most impressive buildings (e.v.e.r). The Collisium, the leaning tower of Pisa, the Rialto Bridge... The Italians even coined the concept of money (like our pun?).
But in the past decade Italy’s economy has grown only 3%. Lots of factors play a part in this... the“rickety education system” and “low unemployment amongst women, youths and older workers” for instance, but central to it is that the private sector is made up of small mom and pop stores whose policies have been to self sustain and not to grow.
Mario and Luigi characteristically run self-sustaining businesses, they’ve tended to work late into life within small networks of trusted customers and suppliers rather than expand outside these areas. The WSL suggests that this is because Italy is plagued with red tape leaving little room to innovate, research and develop. So, when the financial system goes belly up there’s nothing to fall back.
According to the WSJ firms with less than 20 workers make up roughly the following of the national workforce....
60% Italy
60% Greece
60% Greece
50% Spain
50% Portugal
20% US
20% Germany
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