Palazzo Chigi replies to the fears raised by the FT about new austerity measures: “TheEurope and Italy need structural reforms to initiate and consolidate growth but, as the Prime Minister Mario Monti, there is no need in Italy for corrective measures to face the crisis”. Monti has been repeating for some time that Italy will not need additional manoeuvres, and he has done so in recent days as well: “A balanced budget remains the goal that will be pursued and which will not require new manoeuvres, he said.
In an article in today's Ft relaunched the fears that low growth and relatively high interest rates could require Italy to take new austerity measures, revealing the contents of a confidential document drawn up by the EU Commission and circulated at the last Copenhagen summit (entitled "The budgetary situation in Italy").
Ma from Brussels water is thrown on the fire: the EU, however, does not confirm "the alleged leak or the status and authenticity of the report" reported by the Financial Times and underlines that it does not want to speculate on what could happen in the future in a climate characterized by "uncertainties that weigh on the entire Eurozone and, to varying degrees, on individual countries". The spokesman of EU commissioner Olli Rehn, Amadeu Altafaj, also underlines how Rome has "taken decisive action" to consolidate its accounts and launch structural reforms. Meanwhile theEfsf today placed 3-month bonds on the capital market for 1,979 billion euro with slightly higher rates than the previous auction on 6 March: yields rose to 0,1119% against 0,0516% a month ago. Strong demand at 4,657 billion.
While the Btp-bund spread it is slightly up to 330,6, but the Italian banking sector is also back in the sights: according to S&P, the profitability of Italian institutions will continue to be low in the coming years and this will push them to adopt a conservative dividend policy. In any case, the agency excludes further write-downs such as those made in 2011.
At Piazza Affari the biggest sales hit Bpm -4,38% Banco Popolare -2,56% Understanding -2,55% and Unicredit -2,16. Among the worst too Tenaris -2,83%. Bucking Rest +3,20% on the possibility that the group could proceed with a spin-off of the Travel Retail&Duty Free and Food&Beverage businesses; Mediaset +2,35% after the sale of Endemol; Salvatore Ferragamo + 2% but also Finmeccanica +1,94% and Ansaldo +1,27% celebrating new contracts in the USA and Australia.
Overall, the Ftse Mib drops by about 1%, heavier than the other European markets which are moving in negative territory awaiting the US data on the agenda: industrial orders in the afternoon and the minutes of the Fed meeting in February in the evening. Frankfurt lost 0,15%, Paris 0,41% and London 0,24%. .
