24.8 C
New York
Thursday, July 7, 2022

Italy ready to adjust budget if markets disapprove: Il Messaggero

Italy ready to adjust budget if markets disapprove: Il MessaggeroItaly ready to adjust budget if markets disapprove: Il Messaggero

ROME (Reuters) – Italy’s coalition government is prepared to adjust its contested 2019 budget should markets react negatively and the spread between 10-year government bond yields and German yields spike, the newspaper Il Messaggero reported on Tuesday.

On Monday, the government said it would stick to its plans, though acknowledging that its budget, which would raise next year’s deficit to 2.4 percent of gross domestic product, was not in line with the EU Stability and Growth Pact.

The newspaper did not say whether the alternative budget would lower the deficit to less than 2.4 percent of GDP. It did say the alternative would not entail an exit from the euro.

The European Commission had already sent Rome a warning letter about the budget last week, the first formal step that could lead to Brussels rejecting the measures and imposing fines. The Commission is expected to decide its next step on Tuesday.

The government’s “plan B” would involve redefining retirement measures and basic income for the poor, two key points of its expansionary budget, Il Messagero reported, without giving details of its sources.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles