Italy is not alone in facing this sort of self-imposed trap. As public spending on pensions is the single best measure of the burden of welfare entitlements and the impact they have on the public finances, it is worth listing the top five countries in the OECD on this measure.8 At the top is Italy (15.8% of GDP), followed by Greece (14.5%), France (13.8%), Austria (13.2%) and Portugal (13%). All the top 10 countries in the OECD in terms of public spending on pensions are EU members, but these five stand out as having a particular problem.
