In November 2011, everyone thought Silvio Berlusconi had finally lost it. By the numbers, Italy was in deep trouble. The economy – dealing with one of the largest debt burdens in the world – threatened to bring down the rest of the euro area.

Investors kept demanding higher yields to purchase its bonds. Soon, they speculated, the country would no longer be able to rely on the market to finance itself and would have to ask for international aid. The leaders of Germany and France, as well as the head of the International Monetary Fund, tried to persuade Italy’s prime minister to ask for a bailout and commit to drastic reforms.

Bloomberg Businessweek