This year has been disconcerting for the global economy. The EU has been hit particularly hard. While there has been a lot of debate about the stability of Ireland, Greece and Portugal, the recent downgrade of Italy’s credit rating takes concerns to a new level. On September 20th, Standard & Poor’s downgraded the Italian economy. This has a huge impact on both Italy and the world economy. As the fourth largest economy in Europe, Italy’s downgrade has equity markets and political leaders reeling. Could this have a domino effect? Is the rest of Europe at risk too? While answers are not clear, the speculation is ominous. With each of France and Britain in precarious positions and with Germany’s tolerance for bailouts running thin, concern about the potential ripple effects of the downgrade are real. As political and financial leaders search for the path to economic stability in Europe, we need to ask ourselves: How much change are we prepared to accept in our own personal and business lives to ensure Canada’s future economic stability? It is a question that, so far, we have tried to evade, but a day of reckoning may be on the horizon.
Article Reference: Forbes Business Article
Video related to Italy’s downgrade:
