Sunday, December 03, 2006

Spain is About to Pass Italy in GDP per Capita

The ANNOTICO Report

 

Headline says: "Spain Roars Past". Actually that haven't even Passed Italy!!!!

And When the Pass Occurs, it would be an "EASE" Past, NOT Roar Past!!!!!!!

Premier Romano Prodi's repeated appeals for profound reforms to increase GDP have yielded little and faces stiff resistance even from within his center-left coalition with deep union ties.

But Italians do not view this development with much concern, and eye change cynically.

Italians feel that have the Best Culture, in a Beautiful Country, with the Best Way of Life!!!! Not to Worry!

 

Italians Watch in Disbelief as Spain Roars Past It

But Don't Expect Big Changes


International Herald Tribune

The Associated Press

 December 3, 2006

Until recently, Italians thought of Spain mainly as an inexpensive place to take a vacation from their daily toils.

Now, Italians are uneasily looking over their shoulder as the Spanish threaten to outstrip them in per capita GDP. The reversal of fortunes has become fodder for newspaper columns and dinner party chatter.

"It's a pity for Italy, because we could do better," said Maria Pia, a physician visiting a Christmas market at her child's school in central Milan.

But does that mean an economic revolution is around the corner? Don't count on it. Italy's Dolce Vita, or sweet life, is still alive and well  and most people are wary of change.

"They think they live better than most people, and they think they have more to lose by making changes," said James Hansen, a consultant who has been following Italian business trends for the last 30 years.

Not everyone wants to remain contented with a fine plate of pasta and a glass of Chianti.

Thoughts of Italy's heyday as cultural and industrial trailblazer  the home of film legends Federico Fellini and Roberto Rosellini and of leading brands like Fiat, Ferrari and Olivetti  can bring uncomfortable reminders of lost glory.

"You can enjoy the Italian way of life and you can sit and relax," said Tommaso Nannicini, a 32-year-old economist. "But you should be aware that this is coming at a price, and the price is that other countries are growing faster than you."

Italy's best and brightest are increasingly seeking opportunity abroad. Nannicini, for example, is now a visiting professor at the University of Madrid.

"I'm not an isolated case," Nannicini said. "You'll find a lot of Italians around university departments all over the world."

In Spain, he said, "I know that my status next year depends on my performance, while in Italy, I know if I win a university position, I am there for life. Nobody cares about my performance if I get into the system."

Premier Romano Prodi's repeated appeals for profound reforms have yielded little  and faces stiff resistance even from within his center-left coalition with deep union ties.

Wounded pride aside, Spain's good news isn't necessarily bad news economically for Italy.

"It is actually a good thing. If an economy grows fast, it is buying more things abroad. It means essentially that Spaniards will be buying more Italian food, wine and machinery," said Francesco Daveri, an economist at the University of Parma. "If we can sell more things to a richer economy, there is no reason to complain."

 

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