Italian assets feel the heat as Salvini aims to take on Brussels
Italian assets are under pressure following a unforecasted victory for the rightwing League party in the European elections, something which investors feel could embolden its leader and deputy prime minister Matteo Salvini to step up a budget battle with the EU, or push for early elections.
The EU is likely to begin disciplinary measures against Italy over its debt and deficit levels within the coming weeks, which does not faze Salvini as he pledged to use “all my energies” in a confrontation with Brussels, stating that the European Commission could impose a €3m fine on Italy.
Milan's FTSE MIB index retreated by 0.5%, while Italy’s government debt sold off, while the benchmark 10-year bond yield rose for a second day, up 6 basis points to 2.719%.
Source: Smart Trend Team
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