The fight against tax evasion and spending cuts may not be enough: Italy should be ready for a new manoeuvre. The warning is serious and comes directly from the European Commission, which today published the new Report on public finances. "Additional action will be required of Italy - reads the document - if, for example, the revenues due to an improved fulfillment of tax obligations will be lower than foreseen in the budget, or if difficulties arise in the programmed expenditure restrictions".
Forecasts from Brussels are anything but positive on the deficit and the debt/GDP ratio of our country in 2011, for these reasons the report underlines how "the pursuit of a credible and lasting consolidation and the adoption of structural measures to support growth are the key priorities for Italy". As for the risk of default, according to "the Commission's latest assessment, the risks regarding the long-term sustainability of Italian public finances appear to be medium".
A warning all the more worrying considering the level reached today from the CDs to hedge our debt, which for the first time in history exceeded 500 basis points, reaching 505. As for the spread, after the surge this morning it still hovers around 380bp.
