Home Navigating Italian political risks: What’s next? – ING
FXStreet News

Navigating Italian political risks: What’s next? – ING

ING research team assess the latest developments from Italy.

“Italy’s populist Five Star Movement and the far-right League have sent jitters across markets with their proposals to form a government on an openly euro-sceptic agenda. The President’s veto of a proposed Euro-sceptic finance minister at one point threatened a constitutional crisis.”

“Concerns that populists might consider the idea of issuing mini-BOTs, a short-term debt instrument often described as a disguised parallel currency, have especially fanned investor fears over Italy, where support for the EU is relatively low.”

“So far a crash in Italian debt markets have pulled populists back from the brink, and at present, their leaders are trying to form a less confrontational government. Yet, the prospect of fresh elections early next year remains.”

“The degree to which financial market discipline curtails populist policies – and Brussel’s stance to draw the string from populist support – will be key in determining Italy’s political path.”

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.