Italy from recession to recovery: a critical reflection of Italy during the eurozone financial crisis

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Mnisi, Zakhele
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University of Malta; DiploFoundation
The global financial crisis of 2008 left many economies in different parts of the world devastated. Many countries later recovered but some like Italy which had historical embedded fiscal challenges and sluggish growth, struggled to restore their financial stability. Since then, successive Italian governments responded by developing and implementing myriad instruments aimed at tackling the crisis. These attempts were proven in the past to have failed to improve the dire economic situation which had a potential to spread to other surrounding economies. This paper will explore Italy’s recovery from financial crisis by, amongst others, focusing on the instruments applied to supplement austerity measures, looking at the impact of the austerity measures and attempting to reveal how Italy applied its diplomatic acumen to deal with the crisis to avert further reputational damage to its regional and international standing. In this regard, the purpose of this paper is to attempt to provide a critical analysis and bring to the fore a different perspective on how Italy dealt with the crisis.