The REAL problem is tax evasion

I couldn't find in the article where it says the problem is the Italian government spent more money than it had. I did note that tax evasion and the use of nasty old cash are the real culprits.

New premier Monti says Italy faces emergency | Reuters

He will target widespread tax evasion, sub-standard education and training and Italy's creaking welfare system as well as reforming the labor market in what are expected to be painful and unpopular austerity measures to end a crisis that has put the euro zone's third largest economy at the center of its expanding debt crisis.

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In another shot at a major problem with the Italian economy, Monti said the use of cash should be reduced to cut an underground economy that accounts for nearly 20 percent of GDP.