Italy’s new government may initially steer clear of major fiscal loosening, but it will have to provide some more support to cushion the blow from the energy crisis. Given Italy’s fiscal vulnerabilities, the looming recession, and the prospect of more ECB rate hikes, the risk of a surge in BTP spreads remains high.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.