It is necessary to harmonize deposit guarantee systems and the mechanisms for crisis management. The repercussions of the crisis in Italy According to the latest forecasts, the world crisis will cause GDP to fall in Italy by about 5 per cent this year, after decreasing by one per cent in 2008.
The collapse of foreign demand has triggered a sharp contraction in industrial production and investment. The reaction of firms, especially those most exposed to the international cycle, was immediate: the temporary closure of entire factories and production lines; temporary and permanent reductions in the workforce; postponement of purchases of intermediate and capital goods; and unusually long delays in paying suppliers.