Italy: Why Big Business Is Backing Berlusconi Again

These are boom times for Bologna-based G.D. The family-owned manufacturer of cigarette and candy packaging machines racked up $400 million in sales last year to international giants like Philip Morris, Unilever, and Nestle. The company's profit stream is now rich enough to bankroll new production units in South America and Asia, adding to plants in the U.S., Germany, and Britain.

G.D. is not alone. After three of the most difficult years since World War II, Italian industry is now working overtime. Thanks to booming exports, the Italian economy should grow next year by nearly 3%, almost double this year's anemic performance. "The government is working in the right direction," says G.D Managing Director Giancarlo De Martis. "But I'm waiting to see whether Berlusconi can keep his balance."