Italy's policy paradigm problem

A new perspective is needed on Italy's economic woes – one that refocuses macroeconomic policy and acknowledges the responsibility of ordinary people in contributing to the crisis.

Every year, on the evening of December 31, the President of the Republic of Italy addresses the Italian people with a video message broadcast by all the major radio and television networks. This "end of the year message” is traditionally an occasion for the president to wrap-up the main events of the year and to introduce citizens to the challenges ahead with optimism and confidence.

This year, President Giorgio Napolitano’s task is going to be particularly tough. The country is going through difficult economic times: its sovereign debt is under attack and a sharp recession is expected for 2012.

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