Andrew Lilico is an Economist with Europe Economics , and a member of the Shadow Monetary Policy Committee. He was formerly the Chief Economist of Policy Exchange. Italy's problems are not down to the euro Unless the euro collapses altogether, it is difficult to make sense of the idea that Italy is now under pressure or might be tempted to leave the euro or default on its debts. The euro was introduced from 1 January 1999. In the subsequent eight years up to 2007 (before the current recession), Italy grew at an average of a little over 1.6 percent per year, whilst Germany grew at a little over 1.7 percent per year. In the seven years leading up to the introduction of the euro (1992-98), Italy had grown at an average rate of a little over 1.3 percent per year, whilst Germany had grown at an average of a little over 1.5 percent per year. Italian growth both in absolute terms, and relative to Germany, accelerated slightly as a euro member. As it joined the euro in 1999, Italian government debt was about 115 percent of GDP. By 2007 that had fallen to 104 percent of GDP. Italy did not use its Eurozone membership to run up large debts, indeed it uses the good times to run its debts down, not up -- albeit by less than, say, Belgium, which cuts its government debt from 117 percent to 84 percent. (By way of further reference, German government debt had risen