Germany

Political instability is nothing new for Italy

Data: Gleditsc and Chiozza, 2016, "Archigos — A Data Set on Leaders 1875–2015", Axios research; Chart: Chris Canipe/Axios

Italy is used to changes at the top, so the resignation this week of Prime Minister Guiseppe Conte won't have come as a massive shock.

The big picture: Italy has shuffled through 17 prime ministers over the last 30 years, second only to Japan among G7 countries. With only 3 chancellors since 1982, Germany is on the other end of the spectrum — though Angela Merkel is expected to step aside by 2021.

Shrinking German economy signals danger for global financial health

A sign in German warning us of an economic crisis
Illustration: Lazaro Gamio/Axios

The Dow's 800-point fall grabbed headlines, but the real warning about the global economy's dire health comes from Europe. The German economy shrank in the second quarter, showing negative growth for the second time in 4 quarters.

Why it matters: Germany is being decimated by the global downturn in manufacturing and trade that has weighed extensively on major exporting countries. The downturn is likely coming for other economies as well, experts say.