Could the likely victory of far-right parties in Italy’s parliamentary elections on 25 September trigger a crisis in Italian financial markets? In the view of analysts at Natixis, Italy gives more cause for concern than financial markets suggest.
“The election of a far-right government in Italy would run the risk of Halting the reform process set in motion by Mario Draghi, which is a prerequisite for Italy to receive funds under Next Generation EU; A highly expansionary fiscal policy, making the trajectory of public finances incompatible with public debt sustainability. This would make Italy ineligible for the Transmission Protection Instrument.”
“If Italy lost eligibility for both Next Generation EU and the TPI, Italian financial markets (government bond market, equity market) would deteriorate considerably from their current level. Perhaps the new government will take on board this risk.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.