How painful on the purse will a shopping trip be for Italians now that a government of technocrats is poised to tackle the world’s fourth-biggest debt?
Analysts talk of a fire sale of assets perhaps, new property and wealth taxes, spending cuts on health care, pensions and education.
Research from the past points to Italians ready to accept tough economic decisions.
“The Italians are used to do sacrifices. We did it in preparation for the euro, we did in other occasions but this experience shows that the Italians are ready to pay the price when they understand what the goal is, what is the target. So it is very important that Mario Monti and the whole political leaders’ group will be able to explain what it is for,” said Enrico Giovannini, President of the Italian Institute of Statistics
Peace of mind for the markets is a stated aim for the incoming government. Harsh measures to reduce the 1.9 trillion euro debt is the only way stress analysts. That may calm the markets what of the voters reaction?