AFP, Milan :
Italy’s political situation is once again in flux after far-right Deputy Prime Minister Matteo Salvini pulled the rug out from under the ruling coalition.
With the eurozone’s third largest economy facing possible snap elections, here is a look at the potential financial fallout.
As soon as the markets opened on Friday, the spread – or difference between yields on 10-year Italian government debt compared to those in Germany – jumped 25 points to 235 points, reflecting investor jitters.
Milan’s stock exchange, opening for the first time since Salvini’s statement late Thursday, plunged more than two percent.
“Uncertainty has a price: the spread, and the possible downgrade of Italy by rating agencies,” Carlo Alberto Carnevale Maffe, professor at Milan’s Bocconi University, told AFP.
Italy’s political situation is once again in flux after far-right Deputy Prime Minister Matteo Salvini pulled the rug out from under the ruling coalition.
With the eurozone’s third largest economy facing possible snap elections, here is a look at the potential financial fallout.
As soon as the markets opened on Friday, the spread – or difference between yields on 10-year Italian government debt compared to those in Germany – jumped 25 points to 235 points, reflecting investor jitters.
Milan’s stock exchange, opening for the first time since Salvini’s statement late Thursday, plunged more than two percent.
“Uncertainty has a price: the spread, and the possible downgrade of Italy by rating agencies,” Carlo Alberto Carnevale Maffe, professor at Milan’s Bocconi University, told AFP.
