Italy is at a ‘reasonable distance' from something like the Greek debt crisis, said New York University professor Nouriel Roubini in a recent interview with the Italian daily La Repubblica. Supporting the Italian government's claims and assurances, Roubini stated that Italy's government and banks have reacted relatively well to the global financial crisis. However, Roubini cautioned, ‘There are still serious problems like public debt and lack of competitiveness.' Nonetheless, Roubini said, Italy is at a ‘reasonable distance' from default.
Concern mounted after the world's largest rating firm, Moody's, gave Italy a negative credit outlook, comparing it with other eurozone nations ‘at risk.' Moody's then corrected its statements, asserting that Italian debt remains ‘stable,' but noted that the country needs ‘decisive' debt reduction.