NAPLES, ITALY - 23 JULY 2019: A man walks by a street overlooking the historical center of Naples and the volcano Mount Vesuvius in Naples, Italy, on July 23rd 2019.
Italian companies are deferring expansions and limiting investment rather than risking cash in a time of uncertainty. The public debt remains monumental, running at more than 2 trillion euro ($2.24 trillion), or more than 130 percent of annual economic output. Banks are still stuffed with bad loans — albeit fewer than before — making them reluctant to lend. An economy that has not expanded over the past decade is this year widely expected to again produce no growth.