June 18, 2021
Markets

Bidenomics takes root in Europe’s economically fragile south

Italy, Greece and Spain, hit hard in Europe’s sovereign-debt crisis a decade ago, are once again running big budget deficits and planning to spend on a grand scale to revamp their economies.

Italian Prime Minister Mario Draghi and other leaders in the region are betting that ambitious investments can give a lasting boost to growth. If the gamble doesn’t work, these countries will be saddled with some of the world’s highest debt ratios, potentially destabilizing the eurozone.

After years of running tight budgets with little room for transformative investments, they now see a once-in-a-generation chance to revitalize their economies.

Mr. Draghi, presenting his plans to Italy’s Parliament, said they contain not just a list of public works but “the destiny of the country.”

Many developed countries are embracing President Biden’s conviction that…

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