This has dramatically affected the Italian economy in the last 20 years, (since the fiscal consolidation began), with an average structural gap of 1% GDP below the Eurozone each year. In other words, with good deficit to GDP ratio Italy can commit to repaying its creditors each year, but is struggling to reduce the stock of debt (which has been stabilised but is still at a high level). Thus if a shock hits the economy the debt may become explosive (though at the moment it is under control)..
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