Since the second half of the 1990s, many Italian local authorities began to delve in financial derivatives to get additional funding[1]. The result was an absolute disaster. In terms of criminal law, the Italian courts are presently in the process of deciding who will pay for such practices. The social cost, however, will be paid by the workers through higher taxes and cuts in public services.

The Greek crisis is reaching a decisive turning point. In the run up to the recent elections many reassurances were made, but everyone knows that what is actually being prepared is a plan for an exit from the euro in an attempt to minimize the consequences and then to put the blame for this on the "irresponsible" Greeks.

As in Greece, Spain and France, in Italy every attempt by the ruling class to implement the draconian austerity measures demanded by the European Central Bank and the IMF has rapidly undermined any popular support for the ruling parties and any party which supports these measures. The recent Italian local elections fully exposed the desperate position of Italian capitalism.