Italy faces higher borrowing costs, sanctions on budget

MILAN — Italian borrowing costs have risen after the populist government resubmitted draft budget proposals without the significant changes sought by the European Commission.

The EU's executive branch acknowledged receipt of Italy's letter and said it would issue its response next week. The Commission had asked for revisions because it said the budget plans would prevent Italy's huge debt burden from falling.

Given the refusal of the Italian government to reduce its budget deficit forecast next year from 2.4 percent of annual GDP, analysts expect Italy will be subject to EU sanctions under so-called excessive deficit procedures, which could take months.

The government also kept its 1.5 percent growth forecast, which is higher than the EU's.

The interest rate on Italy's benchmark 10-year bond rose 0.03 percentage point Wednesday to 3.48 percent.

You may also interested in

German business confidence drops unexpectedly, survey shows

Aug 25, 2016

A closely watched survey shows that business confidence in Germany, Europe's biggest economy, has dropped unexpectedly as managers' assessment of both the outlook and their current situation darkens

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

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:

Subscribe to our newsletter!