As recently as 2006, both Italy and Greece had a debt-to-GDP ratio of about 100 percent. Since the financial crisis, Italy’s ratio rose to 130 percent, while that of Greece has soared to 180 percent. (For some perspective, the average in the European Union is about 87 percent, while the U.S. is 104 percent.)
At some point, debt becomes a drag on growth, as economists Carmen Reinhart and Kenneth Rogoff wrote in their book, "This Time Is Different: Eight Centuries of Financial Folly." Greece seems to be at that point. Is Italy? Maybe. We’ll find out.