Italy on Brink of Socio-Economic Breakdown

Italy's public debt, the world's third biggest, continues to grow exponentially. The European statistics agency has warned that it has reached nearly 134 percent of the country's gross domestic product in the second quarter of 2014. That’s up more than 3 percent over the first quarter. More bad news arrived from Brussels. Media reported that the European Commission may see Italy's recently passed budget law, which features 18 billion euros in tax cuts, not compatible with the EU's Growth and Stability Pact. The Italian government has been asked by the European Commission for clarifications about its 2015 budget law. The Brussels-based commission warned Italy that it risks deviating significantly from medium-term budget targets it had agreed with the European Union. On Friday, Italian Prime Minister Matteo Renzi said he is hoping to agree a 2015 budget deal with the European Commission. Some suspect that the EU and Italy's top officials only pretend to argue on economic issues, but when push comes to shove they will just act as one party behind the scenes.