国际英语资讯:News Analysis: European Commission rejects Italys budget plan, moving standoff to new phas_时事

国际英语资讯:News Analysis: European Commission rejects Italys budget plan, moving standoff to new phas

Giovanni Tria, minister of finance, echoed Conte in saying Italy planned to stick with the draft budget plan. Among the factors pushing the deficit higher are increased social spending and lower tax rates, particularly for corporations.

Tuesday's developments sent markets reeling.

The MIB-30 blue-chip index on Milan's Italian Stock Exchange fell nearly 1 percent Tuesday even though the formal declaration from the commission came near the end of the trading day.

The yield on the benchmark ten-year government bond briefly rose above 3.6 percent, its highest level in nearly five years. Higher bond yields, which reflect investor nervousness, increase the cost for the government to borrow money, making large deficits less sustainable.

The euro currency fell against the dollar Tuesday, even though the dollar itself lost ground against other key currencies.

Fedele De Novellis, a senior economist with REF Research, told Xinhua markets were not reacting to the specifics of the European Commission's rhetoric about Italy but rather to what he called the "general mood" created by the standoff between Italy's five-month-old populist, anti-establishment government and the commission.

"The drama itself is having an impact on markets," De Novellis said. "Italian officials keep saying 'There is no Plan B' but the markets are worried that the Plan B might actually be that Italy could start moving away from the euro currency."