Italian Government To Unveil Spending Plans?

Forex News

After investors started having some concerns about the government's spending plans, Italy’s bonds were sold. And now, Italian top ministers will meet to discuss the matter. Before the meeting, Matteo Salvini (Deputy Prime Minister), told that the budget would suggest tax reductions and pensions reform, which might in turn enlarge Italy's enormous public debt.

The Deputy Prime Minister also noted: "The (2019) budget will not include all planned measures immediately, but there will be the first steps towards a flat tax and a radical overhaul of the pensions system".

Yields on Italian 10-year bonds briefly grew to 3% for the first time since June 11. Spread over German debt rose to the maximum since late June of 257 bps.