European Economics

European Economics Update

14 November, 2018

Markets, not the EU, could change Italy’s plans

The small changes that Italy’s Government has made to its Budget are unlikely to placate the European Commission. So Italy looks set for greater budget oversight, which could eventually lead to sanctions. But we doubt that even this would make the Government change its plans. Instead, it will be the market that determines whether or not the Government ultimately rows back on its fiscal promises.

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