Italy has a $127 billion debt problem it is difficult to resolve

Italian companies are still in no hurry to pay their debt obligations, while the rest of the Eurozone countries are trying to reduce public loans. Due to the current economic situation, the Italian government is unable to fully deploy an anti-crisis program against the sharp increase in energy prices.

According to a report from the European Banking Authority, the amount of outstanding loans as of June 30 was a record 123.2 billion euros ($127 billion). In the previous quarter, the debt amounted to 118 billion euros. The country currently has the largest amount of government-guaranteed debt in the EU, although Italy is not the largest economy in the Eurozone.

This fact puts Georgia's Meloni government in a quandary. How long the state is able to support companies with increased costs (including electricity) in a slowing economy remains to be seen.

Any additional support to companies in the form of another loan would simply delay the problem, leaving them with even more debt. Moreover, according to Stefano Caselli, dean of the SDA Bocconi School of Management in Milan, the effects of the recession could severely affect revenues and profits.