The Italian government could not deal with the situation effectively because of overspending that left Italy heavily in debt. Italy also suffered economically as a consequence of overproduction of grapes by their vineyards. In the 1870s and 1880s, France's vineyard industry was suffering from vine disease caused by insects. Italy prospered as the largest exporter of wine in Europe, but following the recovery of France in 1888 Southern Italy was overproducing and had to cut back, which caused greater unemployment and bankruptcies.