Plans by the Italian government for a deficit of 2.4 % instead of pursuing the adjustment path agreed with the EU have led to a sharp increase in the yields on Italian debt, with the yields on ten-year bonds rising above 3%. Italy seems to be only one step away from such an explosive feedback loop.
One of the iron laws of Italian politics is that every new government promises more spending in infrastructure; and ask the EU to change its rules by not counting infrastructure spending for the calculation of the deficit. This is indeed an important demand, which needs to get a fair hearing.
The European Commission’s slap on Italy’s wrist does not take into account a few factors: the robustness of our budget surpluses, the generous contribution to the European home and those advantages that the Euro has granted to the reference country in the Old Continent, that is to say Germany. These are the elements that Brussels should consider before sending its next letter