Italy: Budget pushed through parliament - Rabobank

Analysts at Rabobank point out that Italian government, on the verge of 2019, pushed its budget through parliament, a move that drew criticism from President Mattarella.

Key Quotes

“In a widely watched televised speech, he warned that the “lack of debate” in the run-up to meeting the 31 December deadline implied that close scrutiny of the measures was warranted in future. Mattarella was clearly playing his countervailing power act, by noting that the “high public debt penalizes the state and citizens [...]” and that “Italy has chosen to invest and live its own future in the European dimension”. The wisdom of the 77-year old head of state may well be crucial this year as renewed tensions between the Italian government and Brussels are still very much possible.”

“The upcoming elections for European parliament, which may signal a further shift towards the extremes of the political spectrum and/or nationalist parties, could embolden the Italian government in driving through its populist agenda.”