Italy remains under pressure due to the high yield spreads between the Italian and German government bonds. On Thursday 27 September, the government must submit the Economic and Financial Document to the EU indeed a very important topic as it contains the forecasts on economic growth. Investors are worried about the populist government which could perhaps abandon Italy’s financial stability. If the Italian government includes a budget deficit 2%-2.5% of the nation's GDP against the 0.8% deficit target of the previous government deficit, we assume there will be market turmoil.
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