According to a document by the commission
- Italy's growing debt justifies the launch of a disciplinary procedure
- Warns about Italian debt increasing due to 'snowball effect'
- Says Italy is backtracking from structural overhauls, pension reform
- Also says Greece fiscal measures are a cause of concern
The euro is dropping slightly on the headline here as Italian assets take a knock. The FTSE MIB is now down by 0.4% while BTP yields are climbing as bonds sell off. EUR/USD slips a little from 1.1285 to 1.1270 levels but markets has had quite a bit of time to digest this.
From here, the disciplinary procedures will have to go through a series of approvals from member state heads and finance ministers before they will get officially implemented. This can take up to several weeks/months.
