A budget clash with the European European will keep the Italian-German bond spread high, Moody's Investors Services said Friday.
"The growing tensions with the European Union will keep the costs of financing (the public debt) high" and "will increase the risks for the economy," said Kathrin Muehlbronner, Senior Vice President of the US ratings agency.
The spread, a gauge of investor confidence in Italy servicing its debt, has risen above 300 points since the EC rejected Italy's 2019 budget.
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