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Feature: Still hit by austerity, Italians watch attentive, empathetic to Greek crisis

Xinhua, July 5, 2015 Adjust font size:

Whatever Italians may think now of the Greek crisis, and of the reasons behind the standoff between Athens and the European Union (EU), they do know what austerity means to their ordinary life.

Three different cabinets have come in succession since late 2011, introducing painful measures to slash welfare spending and bring more order into Italy's public finances according to EU rules.

Since Prime Minister Matteo Renzi's cabinet took office in February 2014, the country has also gone through a wide reform process concerning institutions, state administration, electoral system, and labor market among other sectors.

Italy's economy now seems to be emerging from a three-year-long recession, although the recovery is still seen as fragile.

Yet, whereas economic fundamentals appeared now stronger according to statistics, the hardship has not ended for many citizens.

"Our income has decreased by some 30 percent since September 2014 compared to the same period last year, and that was already a bad one," Valentino from Rome told Xinhua.

The man, who preferred not to give his surname, has been running a small stationary store for 13 years.

"We hold on, hoping the situation will recover gradually," he said.

"Wholesale prices have increased through the crisis; and taxes, or comparable costs such as those connected with the now-mandatory PDQ machine for credit card payments, have also grown," said Valentino.

With austerity still weighing on many lives, the Greek crisis has been dominating the front pages of Italian media for weeks, and ordinary people have followed it with attention.

Many seemed to empathize with the Greek citizens for their day-to-day struggle and the hard choice they face with the referendum on Sunday.

As the recovery here has not yet reverberated much through their life, many had negative comments on the results of the cuts and reforms so far implemented.

"I am an optimistic by nature, but I do not think these years of austerity have been much of help," Valentino said.

"The profit margin is still very low, and small traders like me suffer more than big companies. The reforms were not useful to me," continued Valentino.

The shopkeeper sounded confident in his own capacity to endure further difficulties, but worried about his two children: a 31-year-old sport journalist, now on redundancy benefits, and a 26-year-old IT engineer in search of a job.

Both were facing challenging times, according to him.

"Take the recent labor reform: it has only weakened the workers' position without much benefit for businesses, in my opinion," Valentino said.

"And the cuts to the public health system? Last month I had to pay some 700 euros (about 777 U.S. dollars) for check-ups in a private facility: I had no choice, the waiting list at the hospital was too long, and their ticket not much lower in comparison," Valentino said.

Italy's reform path helped the economy recover, along with an overall improvement in the global economy, and restored some confidence in the country at international level and among EU partners, according to an analyst.

"Our image abroad has improved mainly thank to the reforms, in the last year especially, which have conveyed a message of dynamism after 20 years of paralysis," Nicola Borri, professor of economics with LUISS-Guido Carli University of Rome, told Xinhua.

"However, economic and social reforms need a long implementation process. It is normal and understandable if there is a gap now between the improving economic fundamentals and what ordinary people perceive in their lives," he explained.

In fact, 28-year-old Giada Murano believed the crisis and the following austerity have mainly "downscaled expectations for the future".

"I am about to get a PhD in Law, but I am not sure I want to be a lawyer anymore, especially because so much has changed since I chose that path, and not for the better," she told Xinhua.

She would need a master in Law now, and could not afford it, nor did she want to weigh on her parents for such a considerable sum.

Meanwhile, she has been running a cafeteria her family put up since before the crisis hit the country at the most, and seemed to enjoy her experience despite all difficulties.

"I never thought my future could be linked to a business like a cafeteria," Giada explained.

"But the crisis has indeed taught me something: the meaning of money, and the value of the sacrifices my parents made to make my sister and me study," said Giada.

She had a critical view on whether austerity and reforms did Italy good overall, or just burdened ordinary people.

"We were told reforms were necessary because the world has changed ... Fine with me! Perhaps it is true Italy would be in Greece's shoes now, without reforms," she said.

"The problem is for young people the uncertainty (in the job market) is too high. We cannot build ourselves a life, and this is a great source of dissatisfaction," she said.

"As for Italy overall, my worst fear is the economic growth will not be inclusive and we will have even more social disparity in our society in the future," she concluded. Endit