Repubblica reports
- European Commission to begin infringement process against Italian government
- Italy's fiscal policies have hurt confidence, contributed to its economic slowdown
- Says that Italian government's lack of fiscal prudence exposes Italy to possible shock loss of market confidence
I reckon the official announcement itself will have a more profound impact on markets but the suggestion here is that we're leaning towards that. Once the EDP measures begin, it will have to go through a series of approval processes before officially being implemented.
That could take several weeks or a few months but it's looking inevitable that we're going to see a real and serious clash between Italy and the European Commission.
