BTP yields are down to their lowest in two weeks
Salvini's continued reiteration that Italy "will respect EU limits" is doing the trick to convince investors that the government isn't going to be irresponsible when it comes to its finances. But the devil is really in the details if you ask me.
While the headlines are certainly great to calm worries, Salvini has also continuously reiterated that pension reform is a priority and that tax cuts is a goal that the government is working towards achieving.
And when the government is also seeking to provide citizens' with income, it's hard to envisage how all of that fits into the responsible budget that they are talking up - one that "will respect EU limits".
Sure, the government may at the end of the day put up a proposal which is under the 3% limit set by the EU. However, if their fiscal responsibilities and actions show otherwise, this isn't just going to be a debate that ends in October. Instead, it is one that is going to stretch on throughout 2019.
