Further comments by Italy's finance minister Giovanni Tria
- Government will do what it has to do if spread hits 400 or 500 bps
- Our goal is to make spread reflect economic fundamentals
- Italy is one of the few nations with a primary surplus in the past few years
- If there is a financial crisis, government will do as what Draghi did
Did he just give markets a level to price in Italy's budget woes? It certainly seems like it. The spread today between Italy and Germany's 10-year bond yields is now at 314 bps:
Regarding his other comments, he should also know that Italy is also only second behind Greece in the Eurozone of having a debt-to-GDP of over 130%. Regarding the Draghi comment, I believe he's referring to 2012 when Draghi came out with the "whatever it takes" rhetoric to save the euro.
