Editorial Board: Italy’s uphill financial fight

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THE WORLD ECONOMY'S future may hinge on Europe's ability to resolve its debt crisis. And Europe probably won't be able to resolve its crisis unless Italy gets its financial house in order. With a gross domestic product of $1.7 trillion and a national debt of $2.6 trillion, Italy is both dangerously close to insolvency and too big for the rest of Europe to bail out. The bond markets are charging Italy unsustainably high interest rates, and that won't change unless and until the country can start shrinking its debt-to-GDP ratio.

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