( CNN ) -- Italy -- an economic giant of the eurozone -- is failing on the global stage and must adapt if it is to survive , the head of coffee giant Illycaffe has warned . Andrea Illy , CEO of Trieste-headquartered Illycaffe , told CNN his country 's woes would be `` just the beginning of our problems '' unless its businesses learned to compete in the international marketplace -- something they had largely failed to do . `` The Italian economy is wrong in the sense that it is not conscious enough about how important it is to become competitive in the global arena , '' he said . `` Let 's say we do n't really step up : what we have suffered until now ... is just the beginning of our problems . '' Italy 's economy makes up 17 % of the eurozone -- almost three times that of bailed-out Greece , Portugal and Ireland combined -- and , as the third-largest economy in the bloc , is regarded as `` too big to fail . '' Illy 's comments come as the borrowing costs of Spain , another pillar of the bloc , push toward 6 % , feeding fears the debt crisis is spreading to larger economies . Italy 's borrowing costs passed the psychological 7 % level -- beyond which countries are considered unable to fund themselves -- last November , before dropping back . According to Illy , Italian businesses have been slow to adapt to the demands of a globalized economy -- unlike many German businesses , for example , which had aggressively pursued a path of international expansion through creating foreign partnerships . `` Some entrepreneurs did it : few , not enough , '' he said . `` In the meantime , the relative size of the Italian industries in most of the sectors has been declining . '' He said the far-reaching reforms being implemented by new Prime Minister Mario Monti were `` absolutely '' necessary for Italy to regain its economic vitality . `` This country needs a break in Italian politics in order to reform , '' he said . `` Otherwise there will be no growth . '' Illy is the grandson of Francesco Illy , who developed the modern espresso machine and founded the company in Trieste in 1933 . Today , Illycaffe sells its products in more than 130 countries around the world . The company faced a significant challenge in competing `` in a more crowded , competitive market arena , '' he said . But , conversely , `` opportunities are becoming much larger , '' he added . He saw a strong future for the company in the premium sector of the coffee market , which had undergone significant changes in the past decade or so . Previously , he said , the market had been `` the shape of an anvil ... with a big mainstream part and a very small narrow premium coffee segment . '' Today , he said , it was more like an hourglass , with a substantial market for premium , specialty coffees . `` This is the future , '' he said . `` It will be more and more high quality , like wine . '' Being an internationally competitive coffee brand did not mean aiming to have as many outlets as Starbucks , he said . `` I would like to have 1 % of what they have , but to reach the same awareness . ''
The head of Illycaffe says Italian business has failed to compete internationally . He blames the euro for Italy's economic woes and says it is time Italy left it. Reforms currently being implemented were needed to restore its economic might .