It financial crunch of Italy has made to surpass Spain. It has been reported by the Standard & Poor that the debt rating of the Italy worse than that of Spain. Moreover, the worst part is the country doesn't have sound political leadership to deal with the growing issue.

Although it has been reported that Italy's financial debt is at worst, the Spain economy is also not close to recovery from the debt crisis. However, the bailouts and the austerity plans implemented on the country have definitely helped it from overcoming the turbulent period. While acknowledging the progress of the country, Governor of European Central Bank (ECB), Jean-Claude Trichet said that the policy makers are required to stay vigilant as the world might witness another hit by inflation.

ECB has lately bought the bonds of Spain and Italy with the hope of helping the two economies to overcome the debt crisis. Spain has been under danger since Greece asked for bailout. Following the European crisis, there isn't any country which has not been affected by it. In such a turbulent period, the austerity plans have proved the most helpful in regaining the lost confidence.