According to a report by Il Messaggero
- Conte, Tria are working on proposal to cut deficit target to reach a deal with the EU
- Would reassure Brussels that deficit will not exceed the 2% level
- Proposal involves delaying by several months planned welfare and pension reforms
Some positive news coming out for Italy here in the early morning as reported by the daily. I reckon we should wait for official confirmation but it's looking more and more likely that a compromise is going to be struck as Italian officials are willing to move their goalposts from 2.4% to 2.2% and now to this.
Let's see what Di Maio and Salvini has to say later on in the day; if we do hear from them that is. But Italian bonds should be a little more cheerful on the back of the report here, although we have had many false dawns with Italy over the past few weeks.
