The crisis has not been limited to the real economy. Italy has been suffering a long and very serious recession. GNP has fallen 8.3% since 2008, more than during the Great Depression. We have ever increasing unemployment (a steady trend of 12%), more short-term precarious employent, a fall in effective demand and productivity (presently, the latter is only 60% of Germany's). The present expectations are negative, and we all know how important such expectations are to any recovery (GNP in 2013 will fall by around 1.5%).
What is the real cause of this crisis? To put it simply, the lack of adequate resources for investment over the last 15 years is to blame. So this crisis cannot be regarded just as the effect of the 2007 financial crisis - the illness, so to speak, had already weakened the body. The failure of Lehman Brothers was the explosive trigger that tore apart a country that had not experienced growth in over ten years.
However, I believe this crisis is something more: it is a social crisis.
To read the full article of Prof. Manghetti, please click here (.pdf)
To cite this article:
MANGHETTI (Giovanni)(2013). The impact of the Crisis on Savings Banks in Italy, ESBG Perspectives n°66, pp. 75-84.