Silvio Berlusconi Resigns, but Still No Confidence

Greece is slipping fast, yet in accelerated fashion Italy is falling with the Aegean.

Prime Minister Silvio Berlusconi faces pressure to step down, just as his Greek counterpart did three days ago. Yet the controversial Italian Media Mogul has failed to inspire any confidence in global markets, which are enduring a massive sell-off in the invent the Cradle of the Roman Empire fails to restructure its debt.

Italy faces four major challenges to restoring its economy and reputation in the Eurozone:

1. Cut the debt

2. Liberalize the labor market

3. Attack tax evasion

4. Boost productivity.

Governments are responsible or the first, without questions. In order to cut debt, a nation-state must cut spending or raise revenue.

Like the Greeks, Italians have basked in a moribund economy, one fraught with pitfalls in attempts to invite new business while still subsidizing a grand welfare state. With the Italian population not growing, with the current population aging considerably, the Iberian peninsula looks poised to sink into the Mediterranean.

Tax evasion is another culprit, with mafia contacts still intimidating businesses and regional consumers. Some municipalities have failed to maintain the upkeep of their communities because of mafia corruption.

To boost productivity, the state must stop doing so much. Like the Greeks, Italians -- and human beings in general -- are loathe to losing easy money handed out by the government. Italy has run out of other people's money to spend, and the debt crisis which is sinking the return rate on its bonds is sending shockwaves through a nation that cannot be bailed out by the European Central Bank.

When will this insanity stop? These nations have no incentive to manage their own debt, and now they are taking down with them the more responsible member states which have maintained more stable revenue streams and market action in spite of global recession.

There is no way that the Eurozone can bail its way out of member-state irresponsibility. Greece and Italy must be ejected from the Eurozone immediately.