Tag Archives: Italian debt

Italy’s structural weakness explain higher level of concern around its deficit target. Each EU member state is currently preparing 2019 budget plans for formal submission to the European Commission (EC) before mid- October. Among them, France and Italy’s budget plans have been raising eyebrows. Why is the EC concerned about Italy’s proposed 2.4% GDP deficit target for 2019 and not France’s target of 2.8%? Is Italy being...

Italy’s structural weakness explain higher level of concern around its deficit target.Each EU member state is currently preparing 2019 budget plans for formal submission to the European Commission (EC) before mid-October. Among them, France and Italy’s budget plans have been raising eyebrows. Why is the EC concerned about Italy’s proposed 2.4% GDP deficit target for 2019 and not France’s target of 2.8%? Is Italy being treated unfairly by its European partners and by markets? Italy and France...

The Italian government’s budget plans set it on a collision course with the European Commission. The road to some kind of agreement is likely to be long and bumpy. The Italian government has confirmed its deficit target at 2.4% of GDP for 2019. This represents significant slippage from a previous budget deficit target of 0.8% in 2019. The deficit target has been set at 2.1% for 2020 and 1.8% for 202. But it is not the...

The Italian government’s budget plans set it on a collision course with the European Commission. The road to some kind of agreement is likely to be long and bumpy.The Italian government has confirmed its deficit target at 2.4% of GDP for 2019. This represents significant slippage from a previous budget deficit target of 0.8% in 2019. The deficit target has been set at 2.1% for 2020 and 1.8% for 202. But it is not the headline deficit numbers that are a problem, but rather the details behind...

Risk of contagion from the volatile Italian bond market leading us to become bearish on euro peripheral debt.Italian sovereign bonds remain under pressure due to domestic political turmoil. The coming months could remain volatile. The lack of an elected government until later this year will probably lead rating agencies to put Italy on a negative watch, although they could wait for the formation of a new government before downgrading Italy’s rating. Such a downgrade would be very likely if a...