Kevin Drum prepares for the worst. Daniel Gros faults bad governance:
Italy’s growth fundamentals are all in pretty good shape, except one – good governance. Worldwide Governance Indicators show a dramatic worsening during the Berlusconi governments especially when it comes to the rule of law, government effectiveness, and control of corruption. Progress on improving these might in the end be more important for growth than the reforms the EU demands.
The Dish 