The accumulation of debt has not helped Italy to grow. It has not endowed the country with adequate infrastructure. High debt constrains public policies; it requires higher taxes and reduces the resources available for investment and welfare expenditure. With interest rates rising, albeit by very little so far, interest payments are again tending to increase.
They are already equal to the amount spent on public education and to two thirds of that spent on health care. In 2005 there were 42 persons aged 60 or more for every 100 of working age. By 2020 they will have risen to 53 and by 2040 to 83. These trends will affect spending on pensions, health care and social assistance.