At the time of the G-20 summit in Cannes that month, Italy – and Europe – was dangerously close to collapse, with Berlusconi’s government deeply divided about the fiscal measures needed to bring down the country’s debt-service costs. Domestic political deadlock, and Berlusconi’s inability to engage with Germany and France resulted in spiraling refinancing costs, with the spread relative to German bunds consistently over 500 basis points between July and November 2011.