HomeLive CommentsItaly may adjust budget plan if markets react negatively

Italy may adjust budget plan if markets react negatively

Italian newspaper Il Messaggero reported today that the coalition government is prepared to adjust its budget plan should markets react negatively. For now, the government is sticking to its deficit target of 2.4% of GDP in 2019. And there could be a plan B for the government including redefining the key elements of the expansive budget. Those adjustments could even include retirements and basic income for the poor.

European Commissions will discuss today what’s next regarding Italy, after formally getting its reply. It’s generally expected that the Commission will reject the budget and demand resubmission from Italy.

EUR/USD’s weak recovery ahead of 1.1432 supprot today could be an reaction to the news. But it’s so far very weak.

Italian 10 year yield is down -0.033 at 3.447 for the moment. It’s already way off last week’s high near to 3.8%. But German 10 year yield is currently at 0.445. Spread remains close to 300.

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