Italy’s finance Minister Giovanni Tria’s comments have calmed markets but analysts at Danske Bank think it is too soon to declare the Italy crisis over just yet.
Key Quotes
“Market pressure is likely to return in September when the government publishes its budget proposal.”
“The Italian government will have to walk a fine line to placate both the EU and Italian voters.”
“Spreads continue to tighten, as no news is ‘good’ news for the Italian market. However, we think markets are a bit complacent, as we still need to see more evidence that Italy is committed to following EU budget lines.”
“An Italy debt risk premium of a few big figures is set to stick to EUR crosses until a clearer verdict on fiscal sustainability can be made.”
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