The bigger the spread, the lower the investor confidence and the higher the interest rates the country has to pay to borrow money.
Also on Friday, the European Central Bank reported that in August this year, foreign investors sold off 17.9 billion euros' worth of Italian sovereign bonds and company stocks -- another sign of waning confidence in Italy's ability or willingness to repay its debts.
Critics of the government's draft budget -- which so far include Italy's Parliamentary Budget Office (UPB), Confindustria industrialists association, the International Monetary Fund (IMF), and several EU countries -- argue that heavily indebted Italy cannot afford to spend money it does not have, that the budget is based on overly optimistic assumptions about future economic growth, and that it does not allocate enough to public investments.
"Real GDP is expected to grow by 1.5 percent in 2019, 1.6 in 2020 and 1.4 in 2021," according to Tria's draft budget. "Employment will grow on average by 1.1 percent per annum over the 2019-2021 period, and the unemployment rate is projected to decline to 8.6 percent in 2021 (from about 10 percent currently)".
However, these forecasts run counter to those of the Bank of Italy, the European Commission, and the Organisation for Economic Co-operation and Development (OECD) as well as Fitch and Standard & Poor's ratings agencies, all of which see Italy's economy slowing down to around 1.1 percent in 2019.
【国际英语资讯:Italy suffers rocky day on financial markets as EU asks for budget clarification】相关文章:
★ 口渴的乌鸦
最新
2020-09-15
2020-09-15
2020-09-15
2020-09-15
2020-09-15
2020-09-15