July 20, 2011

Italy's Illegal economy: Mafia Inc.

Soldi Rubati (Stolen Money) an interesting book on the disastrous situation of the Italian economy and society has been recently published (available in Italian only at this moment).
It describes in full details the extent of corruption and illegal economy now pervasive in the Italian society.
I'm quoting below some incredible figures worth noting now that Italy has entered into the maelstrom of debt collapse.
The illegal economy in Italy is the first of the world and it amounts approximately to 500-600 billions per year. An amount much bigger than the one allocated to bailout Greece, Ireland and Portugal together and a huge amount compared to the 80 billion austerity package enforced by the Italian government last week to save the country from a default.
An approximate breakdown is the following:

Tax Evasion: 120 billion euro per year
Corruption: 60 billion euro per year
Illegal economy: 350 billion per year
Financial Fraud: 55 billion per year

Nunzia Penelope, a journalist and author of the book brings up statistical data from the Italian Statistics Instute, Central Bank of Italy and the Italian Chamber of Industry which are clearly outlining how Italy is becoming the biggest Mafia State in the world. What many research institutes are saying is that the legal economy is being slowly strangled by the illegal one, Mafias are gradually becoming the most efficient and productive enterprise in Italy while swallowing or wackin' any other legal business.
If the crisis should bring to a bailout of the EU/IMF to Italy there is no doubt that a huge percentage of that money would end up in the pockets of the Mafia, worth considering should push come to shovel.
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