There's a Reason Italy's Losing to Spain in the Recovery Stakes

While Matteo Renzi and Mariano Rajoy may be lacking some clarity about their political future as prime ministers, the score card on their respective economies is easier to read.

Italy and Spain, the euro zone’s third and fourth-largest economies, have taken different routes out of the severe recession that followed the financial crisis. An early clean-up of its banks after the bursting of a property bubble, coupled with reforms aimed at increasing competitiveness, have given Spain an edge over Italy. There, legacy issues are holding back growth that has historically been slow.