Italy looks back...and smiles (with bitterness ).

You must have noticed, that I'm an Italy's admirer. The fact comes from at least three decades ago, when my connections with our Mediterranean neighbors were strictly professional. In every occasion though while active, I was seizing every opportunity that appeared in order to know its people and countryside better.

With Italians, it was always very easy to start a friendship. Open characters and minds, lots of humor and evidently with a fine tasting !

( They say if you want to eat well or be dressed well, just follow an Italian...).

Italy, when it comes to economic figures, some 20 years ago, was the 4th export power in the world. Wherever you stayed and looked around, " made in Italy ", was the most common thing. Now, with China's invasion, it doesn't look bright at all.

And suddenly I started to realize that Italy was progressively facing serious problems. Not of the kind that Greece is suffering, but capable to raise serious questions about the visible future. Youth unemployment, hitting a record high of 41%, shows that the younger generation is languishing without opportunity.

The country's current government, under Enrico Letta, hasn't achieved much. Based on a coalition with ex premier, Silvio Berlusconi's party, it seems that the two groups find it virtually impossible to agree on..anything. It is true, that Mr Letta has started to clean up Italy's corrupt political system and to unblock the country's civil justice system, where cases can languish for years. But he was forced to repeal a property tax. This left a hole in the public finances, meaning that Mr Letta was unable to cut employment taxes more decisively and so do more to tackle youth unemployment. Meanwhile, difficulties continue to mount. Although there is some hope that the economy will creep back into growth in 2014, debt has continued to rise this year.

It is forecast to end the year at 133% of gross domestic product-a level right at the edge of what might be considered sustainable.

The wish list for the Italian government, is not so hard to draw up : Ambitious privatization to bring down the debt, cuts in employment taxes, and labour overhauls to create jobs. Reductions in wasteful public spending. Electoral changes to deliver stable governments. Liberalization of product markets to improve Italy's economic potential. Recapitalization of banks so they can support economic recovery. And finally, further overhauls of the justice system.

The question is whether Mr Letta can embrace such an agenda or whether he will continue to be stymied by vested interests on both the left and right of the political spectrum.

With a mountain of issues like all above, the blogger remains very cautious on Italy's problems and sadly recalls the not so far away, good days.....