Italian stocks and bonds slump in EMU entry row
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Italian stocks, bonds and the lira all plunged yesterday as Romano Prodi, the Italian Prime Minister suspended talks with unions to make welfare-spending cuts deemed critical to Italy's entry to Europe's single currency.
Mr Prodi is facing defeat of his 1998 budget by his hard-left allies in the worst crisis since his centre-left coalition took power in May 1996. The assault on Italian financial assets sparked calls for fresh elections.
Italy's all-share Mibtel Index shed 466, or 2.9 per cent, to 15,403, its worst one-day drop in 19 months. Futures on Italian bonds for December settlement in London dropped 0.56 to 111.40, and the Italian lira tumbled to 980.0 lire per German mark from 977.1 lire.
Some stock and bond investors, though, said they still expect Mr Prodi's government to survive and bring the budget deficit below 3 per cent of the gross domestic product - a pre-condition for joining EMU in 1999.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments