While the increasing likelihood of a Draghi-led government in Italy has reduced the risk that domestic political turmoil will push up the BTP-Bund spread, it is still possible that a deterioration in the global backdrop could put upward pressure on the spread. On balance though, we think that it is more likely to fall than rise over the coming two years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services