Tuesday, September 6, 2011

How Italy's Austerity Plan Affects U.S.

Under pressure to balance out the budget by 2013, Silvio Berlusconi (leader of the mass center-right political party—one of the largest in Europe) is responsible for the recent, major austerity cuts in Italy, which have in turn affectd the global market economy. Italian students held a strike today though in opposition to the austerity budget plans, claiming that itfails to create jobs while putting too much burden on workers.” (NPR) Italy is the “United State's 16th largest trading-partner, with total bilateral trade of $42.7 billion comprised of exports to Italy totaling $14.2 billion and imports from Italy worth $28.5 billion.” (www.state.gov). As if our debt crisis isn't enough, our economy is suffering even more from the close economic connection we have with Italy.



Sources—

  1. The Washington Post

  2. www.state.gov

    3. NPR

Vocabulary / Political jargon


Austerity— Difficult economic conditions created by government measures to reduce a budget deficit, esp. by reducing public expenditure.



The Italian parliament was expected to begin debating a new austerity program of tax increases and budget cuts, and unions planned to strike in opposition.


From: “U.S. Markets Down as Crisis in Europe Deepens” The Washington Post, 6 September 2011



G-8 (The Group of Eight)— (formerly the G6 or Group of Six) is a forum, created by France in 1975, for the governments of eight major economies: France, Germany, Italy, Japan, the United Kingdom, the United States, Canada, and Russia.



The United States and Italy cooperate closely on major economic issues, including within the G-8.


From: Background Note: Italy, “Italy-US Economic Relations” www.state.gov, 12 May 2011

No comments:

Post a Comment