low.[117] Italy has often been referred the sick man of Europe,[118][119] characterised by economi

Vineyards in the Chianti region. Italy is the world's largest wine producer.
Despite these important achievements, the Italian economy today suffers from many and relevant problems. After a strong GDP growth of 5–6% per year from the 1950s to the early 1970s,[113] and a progressive slowdown in the 1980s and 1990s, the last decade's average annual growth rates poorly performed at 1.23% in comparison to an average EU annual growth rate of 2.28%.[114] The stagnation in economic growth, and the political efforts to revive it with massive government spending from the 1980s onwards, eventually produced a severe rise in public debt. According to the EU's statistics body Eurostat, Italian public debt stood at 116% of GDP in 2010, ranking as the second biggest debt ratio after Greece (with 126.8%).[115]
However, the biggest part of Italian public debt is owned by national subjects, a major difference between Italy and Greece.[116] In addition, Italian living standards have a considerable north-south divide. The average GDP per capita in the north exceeds by far the EU average, while many regions of Southern Italy are dramatically bec stagnation, political instability and problems in pursuing reform programs. By the end of August 2013, unemployment reached 12.2% (40.1% for youths).[120]
More specifically, Italy suffers from structural weaknesses because of its geographical conformation and the lack of raw materials and energy resources: in 2006 the country imported more than 86% of its total energy consumption (99.7% of the solid fuels, 92.5% of oil, 91.2% of natural gas and 15% of electricity).[121][122] The Italian economy is weakened by the lack of infrastructure development, market reforms and research investment, and also high public deficit.[107] In the Index of Economic Freedom 2008, the country ranked 64th in the world and 29th in Europe, the lowest rating in the Eurozone. While Italy received development assistance from the European Union until recently,[123] in 2011 the country was the third net contributor to European Budget after Germany and France,[124][125] and despite its recent economic crisis did not receive any bailout program from the EU from any of its financial mechanisms (ESN) while providing its full support to these financial programs.[126]
The country has an inefficient state bureaucracy, low property rights protection and high levels of corruption, heavy taxation and public spending that accounts for about half of the national GDP.[127] In addition, the most recent data show that Italy's spending in R&D in 2006 was equal to 1.14% of GDP, below the EU average of 1.84% and the Lisbon Strategy target of devoting 3% of GDP to research and development activities.[128] According to the Confesercenti, a major business association in Italy, organized crime in Italy represented the "biggest segment of the Italian economy", accounting for €90 billion in receipts and 7% of Italy's GDP.[129]
Moreover, the big gap between the wealthy Centre-North of country and the poorer South, remains unresolved, following several decades of failing politics to develop the Mezzogiorno. Today, while the North and the Centre of the country have a GDP per capita which is about 115-125% of EU average, with the North being one of the industrial cores of Europe, the South has a GDP per capita which is just the 70% of EU average.[130] South Italy also sees bigger levels of unemployment, corruption, organised crime and "black economy", and as well

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