Italy’s ruling League party leader and Deputy Prime Minister (PM) Matteo Salvini was reported by Reuters, as saying that a 50 billion euro ($55 billion) budget is necessary next year to bring about a “shock” fiscal stimulus.
Salvini called for an early election last month, which could complicate the nation’s preparations for the 2020 budget. He hopes to trigger elections by forcing Prime Minister Conte to resign on Tuesday, as he pulled the plug on the coalition.
Conte is due to speak in the Senate later today at 1300 GMT.
The Italian political drama is likely to add to the bearish bias around the shared currency, with EUR/USD looking to retest the YTD lows at 1.1027 in the coming days.
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