<strong>Italy’s EUR35 Billion Budget Law to Be Almost Totally Deficit-Funded; More Funding Likely Needed in Q2</strong> –<strong> Sources</strong>
–Flat tax for VAT-holders raised to EUR 85,000 income –Measures to cushion impact of energy costs are the biggest share of spending –‘Citizenship wage’ for jobless slashed; retirement age cut By Silvia Marchetti ROME (MaceNews) – Italy’s government budget plan for 2023 is set to total EUR 35 billion, including pro-growth measures and subsidies to […]
Italy’s Rightist Government Aims to Soften EU Fiscal Rules, Sees ‘Reinforced Supervision’ Unacceptable – Sources
By Silvia Marchetti ROME (MaceNews) – Italy’s newly appointed rightist government will seek to negotiate softer fiscal rules at the European level to take into account ‘country-specifics’ for more lenient and longer adjustment paths, according to ruling coalition sources. Officials are worried that the new rules concerning the reform of the Stability and Growth pact […]
Italy’s Lower Growth Forecasts Limit New Government’s Spending Leeway
Analysis: Choice of Italy’s Next Finance Minister Key for Incoming Government’s Credibility, ‘Fight’ Against ECB Rate Hikes Ahead
–ECB’s Panetta a possible candidate By Silvia Marchetti ROME (MaceNews) – The choice of who will be Italy’s next economy and finance minister will be key in determining the winning center-right coalition’s credibility on world markets, and its power in campaigning against more European Central Bank rate hikes. The center-right alliance, which includes the far-right […]
Italy To Issue Shorter Maturities in Q4 to Offset Higher Borrowing Costs; USD Issuance on Hold – Govt. Sources
–Weak Euro Means ‘Not Good Moment’ for USD Debt By Silvia Marchetti ROME (MaceNews) – Italy plans to issue more short- and medium-term debt in the fourth quarter to cope with surging borrowing costs, and U.S. dollar debt issuance is on hold, according to outgoing ruling coalition sources. The new debt securities will have 3-, […]
Italy’s Rightists Election Victory Leaves Shaky Financial Outlook — Explainer
By Silvia Marchetti ROME (MaceNews) – The right-wing coalition victory on Sunday will likely lead Italy to a super-accommodative, risky economic and fiscal stance as parties forming the alliance have all pledged tax cuts and more spending to support the economy. With final results yet to be released, the far-right Brothers of Italy group won […]
Italy Faces Risk of New Debt Crisis with ‘Wobbly’ Right Win – Sources
By Silvia Marchetti ROME (Mace News) – Italy is facing the risk of a new sovereign debt crisis if a rightist win at the next election prevents formation of a stable pro-European government with a credible fiscal plan, according to current ruling coalition sources. Meanwhile, spreads have blown out as polls show overwhelming odds that […]
Likely Win By Italy’s Right-Wing Coalition Would Upset EU Pandemic Aid Plans, Slow Economy – Ruling Coalition Sources
By Silvia Marchetti ROME (MaceNews) – An expected right-wing coalition victory in upcoming elections could delay Italy’s deployment of key European pandemic aid funds aimed at supporting the recovery, with the result of lower growth, warned outgoing ruling coalition sources. Democrat party sources argued that the electoral program of the far-right alliance aims at changing […]
ECB Raises Key Rates by 50 Basis Points, Deviating from Forward Guidance
–Approval of Anti-Fragmentation Tool Allowed Front-Loaded Tightening, Says President Christine Lagarde –Lagarde does not provide forward guidance, says ECB data-dependent By Laurie Laird LONDON (MaceNews) – The European Central Bank raised interest rates by a much-higher than expected 50 basis points following its governing council meeting on Thursday, deviating from the carefully-worded forward guidance issued […]
Super Mario Fails; Italy’s Government On Verge of Collapse As Country Prepares for an Early Vote
By Silvia Marchetti ROME (MaceNews) – Italy’s premier Mario Draghi lost the support of his ruling coalition on Wednesday during a key vote of confidence at the Senate and is expected to resign, paving the way to an early vote and to months of paralysis. Even though Draghi did win the vote of confidence with […]