Goldman Sachs says Italy is risk of a series of credit rating downgrades

This will not come as news to anyone following along with development sin Italy

Last week:

• Italy hikes deficit, defying EU, as economy minister caves in

Weekend:

• Italy politics and budget ... "Tricky stuff"

Monday:

• European Commission reportedly set to reject Italy's budget plans

This from GS:

• Italian politicians set the 2019 government deficit-to-GDP ratio at their preferred level, which was much higher than the prudent target proposed by the Finance Minister. The 2019 budget law that the Parliament will be asked to approve in coming months will likely lead to an even higher government deficit. We now expect the 2019 government deficit-to-GDP to be just short of the 3% Maastricht level and that public debt will be on a rising trajectory again.
• Such an expansionary fiscal policy stance will put the Italian economy and Italian assets under pressure, in our view. It increases the risk of a series of credit rating downgrades and could lead to difficult discussions with the European Commission.

EUR will be vulnerable to further negative news surrounding ongoing Italian developments.