Italy's banking situation is fairly similar to Japan's in the early 1990s. The banking crisis is a symptom of deeper problems, and not a cause.
Italian's are highly antipathetic towards the EU.
Italian GDP is a laggard compared to other European and global economies.
The cost of labour for employers is higher than any other major EU economy.
As a result, productivity growth is shockingly slow.
Slowing productivity growth hasn't been offset by strongly increased hours, greater labour force participation, or increased employment.
Capital only accumulates very slowly, which in turn hits productivity.
The growth of human capital is lower than in France, Spain, and Germany.
Education is not seen as a priority in terms of government funding.
The number of highly skilled workers in the workforce is one of the worst in the EU.
Governance in the country is famously weak.
For a major Western economy, doing business in Italy is incredibly difficult.
