Claudio Pesaro actually had big plans for this year. The 35-year-old Italian, who still lives at home, wanted to buy his own place, marry his girlfriend and have children. But even though he has saved more than a third of the purchase price for a property, he can't find a bank that is willing to lend him the rest. His job is also at risk, as his company is making losses. As a result, he will have to put his plans on ice for now.
Marco Michelli wanted to go into business for himself, starting a microbrewery complete with pub. Beer is popular in Italy, especially among the young. But the municipal authorities hampered him with conditions and fees, and the bank withdrew its commitment to fund his business. That was the end of his project.
These are just two typical stories from Italy, which is currently in the fourth year of its crisis. The mood in the country is depressed. The number of people committing suicide for economic reasons is increasing. The enthusiasm with which Italy greeted the introduction of the euro has long vanished. Now, around 65 percent of the population are skeptical of the common currency.
Hence, Italians were relatively tranquil in their reactions to the latest "Black Monday" on the stock markets, when stocks fell sharply following the announcement that the Italian economy had contracted by 0.8 percent in the first quarter of 2012. They have come to expect such plunges. The focus of the euro crisis is, after Spain, shifting again to Italy. Italian share prices have plummeted, and yields on Italian government bonds jumped back over the dangerously high 6 percent mark. Stock markets insiders report that hedge funds are investing large sums of money in bets against the country, on the assumption that yields will continue to rise -- and are thereby fueling the downward spiral.
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