Bond spread will come down says govt

(ANSA) - Rome, November 20 - The government said Tuesday that it was confident Italy's bond spread will fall from its current high level.
    "The spread will come down. I'm convinced it will come down, unless there is someone who is speculating to damage Italy," Deputy Premier and Interior Minister Matteo Salvini said. "But this government will not allow that". The recent rise in the yields on State bonds has been linked to concerns about the government's budget plan for 2019, which sees Italy running a deficit of 2.4% of GDP next year.
    The European Commission may open an infringement procedure over the plan on the grounds that it would breach the Stability and Growth Pact.
    Premier Giuseppe Conte's government has refused to make significant changes to the package, arguing an expansive budget is needed to finance key pledges and boost growth. The spread between Italy's 10-year BTP bond and the German Bund climbed to 336 basis points in early trading on Tuesday before easing back below the 330-points mark. The spread, an important measure of investor confidence and gauge of Italy's borrowing costs, closed at 322 points on Monday. Deputy Premier and Labour and Industry Ministry Luigi Di Maio said the turbulence on the financial markets will calm down when the European Commission announces its decision on Italy's budget plan for 2019. "The market tension does not help credit (but) once the Commission has made its decision, the tension will fall," 5-Star Movement (M5S) leader Di Maio said. "We are convinced of this. We are not putting ourselves in the hands of destiny. We are going forward on the basis of precise convictions". Economy Minister Giovanni Tria, meanwhile, said "obviously, I'm worried" when asked about the spread by reporters in the Lower House.