Photograph by Giorgio Cosulich/Getty Images

Italy's Lost Year

  1. Italy Pays the Price of Gridlock
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    Italy Pays the Price of Gridlock

    As a political quagmire has brought economic reform to a standstill, unemployment in Italy has risen to an estimated 12.3 percent, the highest rate in more than 35 years.

    Photograph by Giorgio Cosulich/Getty Images
  2. Exit Monti
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    Exit Monti

    December 2012:

    Prime Minister Mario Monti announces he will resign, saying he has lost support in parliament.

     

    Unemployment rate: 11.2 percent

    Photograph by Alessia Pierdomenico/Bloomberg
  3. An Election, but No Winner
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    An Election, but No Winner

    February 2013:

    Italians vote in parliamentary elections, but results are inconclusive. A coalition headed by Pier Luigi Bersani is the top vote-getter but lacks a Senate majority needed to form a government, forcing Bersani into talks to form a coalition with Silvio Berlusconi's People of Liberty party.  

     

    Unemployment rate: 11.6 percent

    Photograph by Alberto Pizzoli/AFP via Getty Images
  4. Stitching Together a Coalition
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    Stitching Together a Coalition

    April 2013:

    After two months of negotiations, Enrico Letta of the center-left Demcratic Party is sworn in as prime minister on April 28. He heads a coalition including Berlusconi's party.

     

    Unemployment rate: 12 percent

    Photograph by Alessia Pierdomenico/Bloomberg
  5. Europe Rises, Italy Falls
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    Europe Rises, Italy Falls

    June 2013:

    Italy's gross domestic product shrinks a worse-than-expected 0.6 percent during the first quarter, according to a report from the National Statistics Institute in Rome. While the euro zone exited recession in the second quarter, Italy's economy shrank an additional 0.3 percent.

     

    Unemployment rate: 12.1 percent

    Photograph by Alessia Pierdomenico/Bloomberg
  6. Berlusconi's Blowup
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    Berlusconi's Blowup

    August 2013:

    Berlusconi throws the governing coalition into turmoil by threatening to withdraw support if members of Letta's party vote to expel him from parliament.

     

    Unemployment rate: 12.2 percent

    Photograph by AFP via Getty Images
  7. Letta Hangs On
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    Letta Hangs On

    October 2013:

    Letta survives an Oct. 2 confidence vote when Berlusconi backs down, as his party shows signs of deserting him. On Oct. 25, Berlusconi announces that he's forming a new party, called Forza Italia.

     

    Unemployment rate: 12.3 percent (Bloomberg consensus forecast)

    Photograph by Alessia Pierdomenico/Bloomberg