Italy’s middle class crashed by widespread banking frauds

12 Mar

The recent financial and economic crisis has hit Italy much harder than other European countries. Poverty and unemployment have risen accordingly in the last decade. Before 1.8 million Italians were still under the poverty line before the start of the crisis in 2007, the figure was almost 4.6 million, or around 8 percent of the population. The unemployment rate has now risen from 6.7 percent (2008) to 10.9 percent (2016). Above all, school and university graduates hardly find any more jobs. Youth unemployment is 40 percent. In 2008 it was half as high.

Live with the parents
As early as the beginning of the nineties Italy had experienced a serious crisis. At that time, according to a report by the Central Bank, the lower classes suffered most; Social inequalities increased strongly. However, the recent crisis that began in 2008 and continues today has led to a slump in the standard of living on a much broader scale. Not only the poorest have to fight today. The broad middle class – according to the Central Bank – accounts for about three quarters of the population – is now much worse than ten years ago.

Declining wages, rising life costs and the steadily increasing tax burden have led to impoverishment of the once well-offed bourgeoisie, especially in the large cities. The young generation is by far the most affected. Although young Italians are better educated on average, they earn significantly less than their parents. Even many who have a fixed working place are hardly able to make ends meet.

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Posted by on March 12, 2017 in European Union



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