Financial markets are worried about the danger of a public debt disaster in Italy. But the threat of a public debt disaster in Italy may additionally now not be so high, in the view of analysts at Natixis.
Is there a actual hazard of a public debt disaster in Italy?
“The danger of an Italian public debt disaster may also appear high, given the excessive degree of debt, the new government’s expansionary fiscal policy, excessive pastime fees and the lack of practicable growth.”
“But the hazard of a debt disaster in Italy ought to be put into perspective, as: Italy has no exterior deficit, not like at the time of the euro-zone crisis, which regulations out a stability of payments crisis; Yields on Italian bonds makes them pleasing for investors; The ECB controls the yield spreads between eurozone countries.”