Italy, as a state, is effectively bust. However it's widely known that it's economy is too big for the EU, or to give it it's other name Germany, to bail out.The Italian state cannot afford to bail out Alitalia nor can it afford to let it go. They hope by kicking the can down the Piazza they can buy some more time to figure out another complicated way to pour money down their unique pan. The EU will look on but take no action for fear that things may become worse..House of cards indeed..