Article: Italy: Dreams of La Dolce Vita; Italians are also living in denial, say economists. And like the Germans, they see no reason to stop, despite a new leader.(Cover story)

Byline: Barbie Nadeau

If you read about Italy in the financial press, you might be excused for thinking that the days of la dolce vita, literally the sweet life, have gone very sour. The numbers are terrible: zero growth, record deficits and staggering unemployment. The main issue raised by challenger Romano Prodi against incumbent Prime Minister Silvio Berlusconi in this month's elections was this woeful record. (Never mind that Berlusconi is a self-made man worth billions; many of the other corporate titans in Italy concluded he was bad for business.) Yet--Berlusconi very nearly won. The Italian supreme court ruled last week that he fell short of controlling ...

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