Economics
With EU Deadline Looming, Italy's League Warns of Risks to Banks
- Giorgetti says widening spread could lead to recapitalizations
- Moody’s cut Italy’s credit rating in blow for populists
Giancarlo Giorgetti
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
Italy is due to answer the European Commission’s doubts about its budget plan following a warning from a government official in Rome that a widening bond yield spread may push some banks toward a recapitalization.
The Commission, in a bluntly worded letter last week, questioned the soundness of Italy’s expansive spending program for 2019. Commissioners Valdis Dombrovskis and Pierre Moscovici said the “significant deviation” needs a response by noon on Monday.