Italy debt tensions reduced Visco to G7

EU budget deal seen favourably says BoI chief

(ANSA) - Paris, July 18 - Italy's debt tensions have been reduced after a budget deal with the EU, Bank of Italy Governor Ignazio Visco said after the Group of Seven meeting in Chantilly Thursday.
    "Particular tension on Italy does not exist, indeed, on the contrary, it is viewed with favour that the decisions that were made, also at the government level, and the discussions with the Commission, have permitted the start of a process of reduction in tension as has been measured by the debt servicing," he said.
    "This is fundamental".
    The government recently passed a 7.6 billion euros mini-budget to avert an EU infringement procedure for breaking the debt rule.
    Italy's debt servicing costs, as gauged by the bond spread, have fallen steadily since the EU deal.
    Italy has the second highest debt in the eurozone after Greece, at more than 130% of GDP.
    Visco said: "The result of the last few weeks is certainly very favourable and this is viewed well by all Italy's partners".
   

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