How high will Italy's debt go? The question is on the minds of all investors in the bond markets and in the minds of European leaders. An abyss of 2800 billion euros, which is not the largest in absolute value (it is less than the 3000 and a few billion of France) or even in proportion to GDP (140%, against 171% for Greece). But doubts are growing about the sustainability of this burden for the eurozone's third-largest economy, as growth slumps, the cost of repayments soars and the government falters in its drive to rein in its finances.
The draft budget presented by Giorgia Meloni for 2024 has electrified the markets. Italy's 10-year bond yield hovered 5% in mid-October, the highest since 2012, widening the gap with Germany's benchmark yield. After giving pledges of fiscal responsibility during her first year in office, the President of the Italian Council, who has been extremely difficult to...
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