Italy is the third-largest economy in the eurozone with one of the highest public perceptions of corruption in the region. It’s estimated that the informal, or “underground economy” may make up as much as 17% of GDP, and tax evasion is a widespread issue. Italy has very high public debt, which reached 120% of GDP in 2011. Unemployment in 2011 reached 8.4%. The Italian government passed several austerity packages in 2011 in an effort to balance its budget and reduce debt, with gas taxes increased 24% over the past year.
Lars Halbauer
