Comments by Italy's deputy prime minister Luigi Di Maio
- Reiterates that government doesn't want to exit the euro
- Does not think that 2.4% deficit target should be changed
Italy has about three weeks to respond to the budget rejection by the EU and so far they are saying that they have no "Plan B". You can pretty much imagine how this would go at the discussion table where both sides would just stare at each other blankly.
The yields spread today sits at 318 bps and is inching back towards the year's highs again. If Italy doesn't have a "Plan B" to work with, I can't see how that will help narrow the spread in the near-term.
