euro europe italy Luigi Di Maio Markets Matteo Salvini

Italian Assets Crushed As Populists Upend Budget Talks At Last Minute

Predictably, the fraught Italian budget negotiations went off the rails at the last minute.

Predictably, the fraught Italian budget negotiations went off the rails at the last minute on Thursday, casting further doubt on the country's fiscal trajectory and underscoring deep fissures between Finance Minister Giovanni Tria and the country's firebrand deputy Prime Minsters. Matteo Salvini was characteristically defiant ahead of today's deadline. "We’ll do a courageous budget, the deficit isn’t a problem", he told Corriere della Sera over the weekend, adding that he "spoke to foreign investors and all of them told me the same thing: do a courageous, expansionary budget." That's a lie, and it came just a day after Ignazio Visco warned the League leader to be careful. For their part, Five Star was reportedly looking for a deficit of 2.6% of GDP in order to make sure they can pay for that damn “citizen’s income”. Fast forward to Thursday and rumors were swirling that a planned cabinet meeting to decide on next year's budget targets might be delayed. The initial reporting, from  Corriere della Sera, cited "new complications". Apparently, Salvini threw his hat in with Di Maio in seeking a 2.4% deficit next year, while Tria drew a line in the sand at 1.9% of GDP
Subscribe or log in to read the rest of this content.

0 comments on “Italian Assets Crushed As Populists Upend Budget Talks At Last Minute

Speak your mind

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Skip to toolbar