(see related stories on govt's budget plans)
Bank of Italy Deputy Director
General Luigi Federico Signorini warned on Tuesday that rises in
Italy's bond spread have a real impact on Italian households and
businesses.
"Around two thirds of Italy's public debt is held by Italian
individuals and institutions, but that does not isolate it from
the logic of the market, which seeks value and flees from
uncertainty," Signorini told a parliamentary hearing on the
government's DEF economic blueprint.
"Oscillations in its value also have effects on the Italian
individuals, families, companies and financial institutions that
hold it".
Signorini added that reducing the gap in Italy's growth rates
with the rest of Europe was a "fundamental objective" while
adding that it was necessary to bring the debt-to-GDP ratio
"under control" too.
"More substantial growth and greater social cohesion are not
in contrast with budget discipline," he said.
Signorini also said that it was "fundamentally important"
not to undo recent reforms that have made Italy's pension system
more sustainable.
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