European Economics

How big a threat is Italy’s election?

European Economics Focus
Written by Capital Economics Economist

Italy’s general election on Sunday 4th March seems likely to result in a government that pushes for a small fiscal stimulus, largely centred on tax cuts. But we doubt that this would provide much of a boost to the economy. And the next government will probably be less pro-euro than the incumbent. As a result, we suspect that investors’ concerns about Italian public debt will resurface.