(ANSA) - Milan, October 8 - The Milan stock exchange's FTSE
Mib index dropped 2.3% in early trading on Monday, taking it
below 20,00 points, while Italy's bond spread crossed the 300
basis-points mark.
The turbulence comes after the European Commission sent the
Italian government a letter expressing concern about Italy's
budget plans and the intention to let the deficit to climb to
2.4% of GDP next year.
Bank stocks were hit hardest on Monday, amid fears of lenders
needing new capital increases.
The spread between Italy's 10-year BTP bond and the German
Bund climbed to 309.8 basis points - the highest level since
April 2013.
The yield on the BTP peaked at 3.62% - the highest level
since February 2014.
The spread, an important measure of Italy's borrowing costs
and a gauge of investor confidence, closed at 285 points on
Friday.
Deputy Premier and Interior Minister Matteo Salvini blamed
speculators for the rise in Italy's bond spread and said the
government had no intention of changing policy.
"If I wanted to think badly, I'd say that there is a
Soros-like manoeuvre by speculators betting on Italy's
bankruptcy to be able to buy the healthy companies that remain
at a cut price," Salvini said.
"In the name of the government, I say that we will not go
back.
"Those who want to speculate on the Italian economy should
know that they are wasting their time.
"As for the spread at 300 points, I'd like to say that we are
faced with a clash between the real economy and the virtual one,
between real life and financial reality".
Milan bourse drops, spread over 300
Tension on markers after EC letter, Salvini blames speculators
