Starting a new business? Get 40% off our accountancy services for 3 months! 😀


The Centre for Economics, Business Research and British think tank have reported that it is likely that Italy will default on its debts. The best and worst economic scenarios were replicated for both Italy and Spain.
The results showed a high chance of Italy defaulting on its debt, with only an unusual and improbable huge leap in economic growth being able to prevent it from doing so. Regardless of the fact that Italy has been cutting costs and running an extremely tight budget, the economy does not appear to be growing at an ideal rate. In the first quarter of 2011, growth was only 0.1% and there are no signs of an increase in rate. It was only Wednesday that the Prime Minister of Italy stated that the Italian economy was solid and the banks assets outweighed their liabilities. However, economists disagree and fear that Italy will lose their battle with the debt crisis.
On Thursday, the CEBR published a report which worked out that Italy’s debt repayments would be 150% of its annual output by 2017 compared to the 128% it stands at now, unless they have a huge economic boost.
In comparison, when the same extreme scenarios were modelled against Spain’s economy the results showed a high chance of Spain evading a default. This is due to the fact that Spain has no where near the amount of debt held by Italy. In the worst conditions, Spain’s debt repayments would still only reach a maximum of 75% of it’s annual output.

About The Author

Lee Murphy

MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.

More posts by this author
Inline Feedbacks
View all comments

Read more posts...

Architects and Tax

Architecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…

Read More

June 2022 Client of the Month: Manea Kella

This month we spoke to Adrian Manea, architect and director at Manea Kella, a London based RIBA Chartered architecture and interior design…

Read More

Succession Planning for Business Owners: What Comes Next?

When you own a business, it’s extremely normal to feel like you’re surviving one day to the next – ‘winging it’, as…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.


You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?


Call us on 020 3355 4047 if you’re not sure.