Tito Boeri, Professor of Economics at Bocconi University in Milan, believes that Italy can get of its economic crisis by implementing responsible fiscal policy, cutting expenditure and trying to restore growth.
His comments come after Italy’s cabinet adopted a package of tax hikes and pension reforms worth 24 billion euros ($32 billion) in a rush to ease a crisis that is threatening the Eurozone.
“It is true that Italy is too big to bail out. At the same time, Italy has all the tools to get out of this situation,” Professor Boeri told SBS.
Analysis: What lies ahead for Italy”s economy (mp3)
“I don’t want to even consider the scenario of default. I see the problem of Italy as one of liquidity and not of solvency, and we are taking now taking the right measures.
“I think that most of the work should be done domestically in Italy to fix the problem of the high debt, but there is also actions that have to be taken at the European level.
“The problem of huge debt has to be faced by having more responsible fiscal policy, cutting expenditure and, above all, trying to restore growth,” he said.
Italy has a debt of 2.3 billion euros ($A3.02 billion), 119 per cent of its GDP.