Written By Basilio Chen

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With Spain $125 Billion bail out plan, others now follow.
Here is what is in the headlines now.

Italy has 2 trillion euros of debt, more as a share of its economy than any developed nation other than Greece and Japan. The Treasury has to sell more than 35 billion euros of bonds and bills per month — more than the annual output of each of the three smallest euro members, Cyprus, Estonia and Malta.

On the positive side for Italy, Italy is on track to bring its budget deficit within the European Union limit of 3 percent of gross domestic product this year and the country is already running a surplus before interest payments, meaning its debt will soon peak at about 120 percent of GDP. The jobless rate is less than half of Spain’s 24 percent, and Italy didn’t suffer a real estate bust, leaving its banks healthy by southern European standards. The budget deficit was 3.9 percent of GDP last year, less than half that of Spain.
However Italy has a below averages growth rate and that is the main problem. It is borrowing against low to no growth.