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In view of analysts at Danske Bank, there was little support for the Italian budget at yesterday’s Eurogroup meeting as the finance ministers backed the EU commission’s stance on the Italian budget for 2019 and that Italy must change their budget for 2019.

Key Quotes

“The head of the Eurogroup, the Portuguese Finance Minister Centeneo stated that he hoped that Italy would revise their budget. The recent comments from the Italian government has been diverse.”

“On one hand the Finance Minister Tria has stated they are looking at revising the budget, while the head of the 5SM – De Maio has stated they will not change the budget.”

“The revised budget has to be send to Brussels no later than Tuesday next week (November 13) and the Eurogroup has called for an extraordinary meeting on November 19. However, despite the risk of a renewed confrontation between the EU commission and the Italian government, the market has remained fairly calm. We attribute this to the rating agencies and their comments on Italy.”