As you say, THAT is Italy's big problem. The country is in a bad way and it will now have to choose between emplying cheap labour to keep its companies afloat or getting rid of its problematic and undesirable immigrants. I don't know how this will play out but it looks as if there's trouble ahead. I'm quite looking forward to the inevitable EU reaction - "You can't do that - it's not in the script!!!"

There are too many Italian businesses (i.e. not in the service sector) that are just not viable. They make cheap appliances, do cheap printing, cheap cars (as in FIATs) and generally do substandard work for low returns. That is, quite simply, not the way to produce viable businesses for the long term. Their problems are largely of their own making, excepting the immigrant problem. They have been inundated with eastern Europeans along with masses of particularly unwelcome Albanians and they cannot cope. Something has to give and if that has to be the bonfire of the EU rulebook then so be it, there will be a number of other countries that will be watching very closely.

The fall-out from the election continues. http://www.guardian.co.uk/world/2008/may/17/italy

No one seems to like gypsies much anywhere. Their lifestyle always seems to conflict with that of the settled population. As we descend further into recession (and Italy is already further down that road) this statement sounds ominous: Umberto Bossi, the head of the Northern League party said: "People are going to do what the political class cannot." I was reminded of the power of the mob while watching the rampaging Glasgow Rangers 'fans' in Manchester on the news this week.

Roma gypsies now living on my estate. Quite a few in the West End of Newcastle too. I noticed them when I was campaigning last month in the elections. Once Italy expels them (or, at least, encourages them to leave), I have a feeling many more will come here.