ECB expects budget deal between Italy and EU: de Guindos

FRANKFURT (Reuters) – The European Central Bank expects that Italy will eventually adhere to EU spending rules and reach a deal with the European Commission in their standoff over spending, ECB Vice President Luis de Guindos said on Thursday.

“If you start to apply expansionary fiscal policy… markets start to penalize Italian government bonds,” de Guindos told a news conference. “What you gain in terms of fiscal expansion for the real economy, can be lost in terms of funding.”

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.