LGIM: Commentaar Hetal Mehta op politieke crisis in Italië

21 aug 2019

“With the Italian Prime Minister stepping down, the President’s role becomes far from purely ceremonial. He will now determine whether an alternative government can be formed or whether early elections are required. Top of his mind will be finding a solution that allows a budget to be passed in the autumn such that Italy can avoid the otherwise automatic 3ppt VAT hike next year.”

“Although the political uncertainty remains high, tensions with the EU are unlikely to flare up to the same extent as seen in 2018 – the European Commission continues to take a more pragmatic view on fiscal slippage particularly when growth in the euro area generally is slowing and other countries such as France are likely to breach the 3% deficit rule.”