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Lower spread will free up growth resources, Saccomanni

Markets like govt reform pledges says economy minister

03 January, 13:34
Lower spread will free up growth resources, Saccomanni (ANSA) - Rome, January 3 - Economy Minister Fabrizio Saccomanni on Friday hailed a sharp lowering of Italy's borrowing costs.

Speaking after the spread between Italian and German 10-year bonds fell below 200 points, he said: "The spread going below that threshold indicates that the markets appreciate the work of the government, its commitment to maintaining fiscal stability and launching reforms, both institutional and economic".

Italy has the eurozone's second-biggest debt after Greece's, at more than 133% of GDP.

A lower spread means a lower cost of servicing that debt.

The government is set to sign a reform pact to stoke growth and liberalise markets while sticking to EU fiscal limits, as well as streamlining government and bolstering political stability with a new electoral law aimed at producing clear winners.