Italy's Deputy Prime Minister Matteo Salvini sees Jean-Claude Juncker and Pierre Moscovici as Europe's real enemies. He launched his attack on the President of the European Commission and the Commissioner for Economic Affairs at a conference in Rome. That reports Business Insider.
Salvini said Monday, Oct. 8, that next year's European elections will be between those seeking to create jobs and those seeking to impose tougher austerity measures (such as Juncker). He made his statements during a joint press conference with French politician Marine Le Pen.
"We are against the enemies of Europe (Juncker and Moscovici), who have entrenched themselves in the Brussels bunker," Salvini said. "The policy of austerity in recent years has increased Italy's public debt and made Italy poorer."
Italian loans
In response to the rulings, interest rates on Italian government bonds shot up. Monday noted the interest on a 10-year loan 3,63%, the highest level since 2014. Subsequently, it fell back slightly. The main stock index FTSEMIB fell to the according to Bloomberg lowest level since April 2017.
At the stock exchange in Amsterdam fell ING, which has a large exposure to Italian debt, at 2,3%. Other major European banks were also hit on the various stock exchanges. Salvini had already lashed out at Juncker and Moscovici before the weekend by stating that they destroyed Europe and Italy.
Higher budget deficit
Salvini is the leader of the Italian Lega party and has formed a coalition government with the populist Five Star Movement since June 1. At the end of September they presented the first budget, in which the budget deficit rises to 2,4%, instead of the previously promised 1,6%. And already Italy's public debt amounts to 132% of national income, well above the European standard of 60%.
The 'Budget for the People' as the other Deputy Prime Minister (Luigi di Maio) calls it includes a basic income for the poor, tax cuts and the rollback of pension reforms. Salvini, Di Maio, Le Pen and other right-wing populists see the European elections as an opportunity to relax fiscal rules. Di Maio said last weekend the results will cause a landslide.
Read more on Business Insider:
- Juncker imitates 'dancing queen' Theresa May – watch the video
- Interest rates are rising, but savers aren't noticing it yet
- Salvini wants compensation because Italian government interest is rising
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