NAPLES, ITALY - 23 JULY 2019: Residents are seen here in Montesanto, a working-class neighborhood 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.