ROME: Italy’s top ministers issued a barrage of statements on Wednesday to reassure financial markets over the government’s forthcoming budget, promising to keep state accounts in check and maintain economic stability.
The concerted charm campaign helped push Italian bond yields to their lowest in almost a month, as hopes grew that the coalition, comprising the rightist League and anti-establishment 5-Star Movement, would respect European Union budget discipline.
“Clearly we will not do everything in one shot, not even Italians expect that from us … If we want to run the country for a long period we cannot blow up its public accounts,” Deputy Prime Minister Matteo Salvini told the newspaper Il Sole 24 Ore.
Investors have sold off Italian bonds since the government took office in June, on concern that the coalition may implement policies that would increase the country’s already-huge debt and breach EU fiscal rules.
But after a summer filled with promises of imminent radical action, ministers have changed their tune this week, following credit ratings agency Fitch’s decision cut its outlook for Italian debt — the third largest in the world..
