You must have missed the news these last few years.
As soon as the markets get a whiff of potential instability in the country that would cause a deviation on the austerity policy imposed by the EU, the credit spread on goverment bonds skyrockets.
And with some good reason, as pre-EU governments used devaluation of the Lira to boost the exports and increase GDP (of course increasing inflation) on one hand, and kept borrowing money on the other, instead of trying to address historical problems like under-development of the South, unsustainable social security, rampant tax evasion, corruption in local administrations.
Even if currency devaluation were possible these days (basically only by leaving the EU), it would have to face a much more globalized economy than last century, where many exports depend on parts manufactured abroad, which would be suddenly more expensive to produce...
Italy is not broke as long it can pay interests on its debt, but every fluctuation in the global economy affect Italy way more than UK, US or Japan.
As soon as the markets get a whiff of potential instability in the country that would cause a deviation on the austerity policy imposed by the EU, the credit spread on goverment bonds skyrockets.
And with some good reason, as pre-EU governments used devaluation of the Lira to boost the exports and increase GDP (of course increasing inflation) on one hand, and kept borrowing money on the other, instead of trying to address historical problems like under-development of the South, unsustainable social security, rampant tax evasion, corruption in local administrations.
Even if currency devaluation were possible these days (basically only by leaving the EU), it would have to face a much more globalized economy than last century, where many exports depend on parts manufactured abroad, which would be suddenly more expensive to produce...
Italy is not broke as long it can pay interests on its debt, but every fluctuation in the global economy affect Italy way more than UK, US or Japan.