IMF warns Italy's spending plan makes country vulnerable

MILAN — The International Monetary Fund is warning that Italy's plan to sharply increase spending carries "substantial" risks and would leave the country vulnerable to market turmoil.

In a regular review of the Italian economy, the IMF says Tuesday that "Italy needs to put to rest any concern about public debt sustainability, which recently has resurfaced."

Italy's populist government has proposed a budget that would see its deficit bloat to 2.4 percent of gross domestic product, more than three times its previous target. That would keep it from reducing its debt load.

The European Union has asked Italy to revise the budget by the end of Tuesday and the standoff has unsettled investors. They have sold off Italian debt, pushing up borrowing rates.

The IMF recommends Italy tighten its public finances instead.

You may also interested in

Asian stock markets mixed as investors wait for Fed cue

Aug 26, 2016

Asian stock markets were mixed Friday, with investors preferring to sit on the sidelines ahead of U.S. Federal Reserve Chairman Janet Yellen's speech for cues on the timing of the next policy rate hike

Bolivian president, opposition spar over official's killing

Aug 26, 2016

President Evo Morales and his political opponents trade recriminations over the shocking beating death of a high-ranking government official by protesting miners who had blockaded a rural highway

Asian stocks mostly rise on hopes for higher US rates

Aug 30, 2016

Asian shares were mostly higher Tuesday as speculation continued about a U.S. Federal Reserve interest rate hike later this year

Broaden News
Search

Manage The Numbers is the world’s fastest-growing finance news website, featuring the latest money and market news, along with in-depth analysis so you can make the best decision.

Contact us: sales@managethenumbers.com

Subscribe to our newsletter!

Name

Email