‘We Do Not Think Markets Will Appreciate This’: Italy’s Populists Successfully Blow Up Budget
“We see this as a defeat for Mr Tria, as a guarantor of fiscal prudence.”
“We see this as a defeat for Mr Tria, as a guarantor of fiscal prudence.”
Predictably, the fraught Italian budget negotiations went off the rails at the last minute.
Whether you’re a geopolitics buff, a Beltway junkie or a market addict, the week ahead has you covered.
Who wants to catch a falling knife?
“Matteo wept for the end of innocence, the darkness of Berlin’s heart”…
“[We will] try to respect all the hurdles Europe imposes, but the well-being of Italian citizens comes first.”
A full docket.
“In September, markets will need to navigate news flow.”
“If the ECB covers you, markets can’t speculate because they don’t make money.”
Games of chicken, prisoner’s dilemmas and the suspension of disbelief.
“I laughed quite a lot, when I saw the report.”
How to hike without hiking and what to do when there are no “good” options.
“We will resist the bond yield spread, speculation, credit downgrades and attacks.”
Just when you thought it was safe to jump back into the lira.
Not exactly.
“Mobilizing” to find a “solution”.
Of populism, propaganda, Salvini and the Trump TIME cover.
Aaaand that’s the week.
It’s a good thing no one is planning on introducing any further uncertainty into the mix. Oh, wait…
Relief. Fleeting, maybe. But relief nonetheless.
It would probably not be wise for the ECB to officially end asset purchases in September just as jitters about new Italian elections are peaking.Â
Unfortunately, the best way to sum up this rather fluid situation right now is to simply employ a Trumpism and say: “we’ll see what happens.”
Parallel currency worries.
So you can go ahead and look forward to more fretting over this and you can also look forward to plenty of accusations from Di Maio and Salvini about how the evil “eurocrats” won’t let them spend their way to oblivion.
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