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.
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.