Recession risk pushes Italy closer to a financial and political earthquake
Italyâs economy has stalled abruptly over the summer and the industrial sector is on the cusp of outright recession, threatening to drive the countryâs knife-edge debt dynamics into dangerous territory.
The sudden slowdown comes as mounting political alarm pushes risk spreads on 10-year Italian debt to a five-year high of 290, a sign that capital outflows are picking up again.
Markets are increasingly nervous as the insurgent Lega-Five Star government draws up sweeping plans for tax cuts and welfare spending in the 2019 budget, risking a bare-knuckled fight with Brussels over EU fiscal rules.
Italyâs debt trajectory is acutely vulnerable to any change in the pace of nominal GDP growth or any...Source: Google N ews Italy | Netizen 24 Italy