Political instability to continue in Italy – ABN Amro
|Following the resignation of the Draghi government of national unity in July, a general election will be held in Italy on Sunday, September 25. In the view of strategists at ABN Amro, Italy is heading for a right-wing coalition.
BTP-Bund spread to widen during and post-election results
“Polls for the election have persistently given a comfortable majority (of around 245 of the 400 seats in the lower house and around 120 of the 200 seats in the upper house) to a right-wing coalition, with the far-right Brothers of Italy led by Georgia Meloni as the dominant party in the coalition.”
“There seems to be a significant risk of infighting within the government, meaning that Italy’s long history of political instability could very well continue.”
“We expect BTP-Bund spread to widen during and post-election results until the political uncertainty eases, which we do not expect to happen before at least H2 2023.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.