Italy (sovereign debt crisis)

Italy's sovereign debt crisis refers to the country's struggles to manage its national debt, which became unsustainable after the 2008 financial crisis. As Italy borrowed heavily to support its economy, high public debt levels raised concerns about its ability to repay loans. Investors worried about Italy's financial stability, leading to increased borrowing costs. This situation threatened the eurozone's stability, as Italy is a key member of the European Union. Solutions involved austerity measures, reforms, and support from EU institutions aimed at restoring confidence and stabilizing the economy, but challenges persist in balancing growth and debt reduction.