Will hurt the weakest part of the banking system
Italy's economic minister Tria is on the wires saying:
- cannot keep Italy/Germany spread at 320 basis points for long because of the impact it would have on the weakest part of the banking system
- If tomorrow we see a repeat of 2008 crisis we will make changes to budget
- was surprised by EU rejection of budget, some of the analysis was superficial
- reiterates comments from Conte yesterday, there is no Plan B on 2019 budget
The current 10 year spread is indeed at 320 bps
