Italy’s Salvini again raps EU budget rules, shrugs off impact on markets

Written by on May 15, 2019

FILE PHOTO: Italian Deputy PM Salvini and Hungarian PM Orban hold a joint news conference in Budapest
FILE PHOTO: Italian Deputy Prime Minister Matteo Salvini speaks during a joint news conference with Hungarian Prime Minister Viktor Orban in Budapest, Hungary May 2, 2019. REUTERS/Bernadett Szabo/File Photo

May 15, 2019

By Angela Amante

ROME (Reuters) – European Union budget rules are “starving the continent” and must be changed, Italian Deputy Prime Minister Matteo Salvini said on Wednesday, a day after he roiled financial markets by saying Italy should be ready to break the rules.

Salvini sent markets into a spin after saying on Tuesday that Rome should be ready to break the EU’s deficit ceiling of 3% of gross domestic product and push debt to 140% of GDP if necessary, to lower unemployment.

His right-wing League party is campaigning along with other eurosceptic parties for European Parliament elections on May 26, but his comments are unnerving investors in Italian debt.

“If there are European rules that are starving a continent, these rules must be changed,” Salvini told reporters when asked about his comments on Tuesday, which sent Italy’s 10-year bond yield to a two-month high and pushed the spread between Italian and German yields to their widest level in three months.

On Wednesday, investor fears spread to the Italian share market and rippled through stocks across Europe.

Asked if he was worried that his remarks on breaking EU rules were widening the spread, he said: “Absolutely not, because Italians’ right to a job, life and health comes first.”

At 132 percent of GDP, Italian debt is proportionally the second-highest in the euro zone after Greece.

(Writing by Mark Bendeich; Editing by Gareth Jones)

Source: OANN

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