Italian economy is at the mercy of global events

Consumer confidence in Italy has fallen to a six-year low, with last year's GDP growth of 0.4% the slowest in almost a decade, according to Bloomberg. With Germany mired in economic problems, Italian exporters have placed their hopes on the US being the sole driver of growth. But a slowing economy in the US, which buys 10% of Italian exports, and the euro's 24% gain against the dollar in the past 12 months have so far put paid to that idea. Investors now see an ongoing ECB relaxation of interest rates as perhaps the best hope for sustained stimulus. From the start of 2003 to the 5 M...