Slightly falling yields of sovereign debt EU, the Commission shall monitor national budgets – Reuters

There was a slight decline in the yields of sovereign debt EU, the Commission shall monitor national budgets

          

Earnings in slight retreat to the European sovereign debt in the early afternoon. The BTP ten-year Italian marks a decline in yield by 2 basis points to 1.57% in parallel with the corresponding Bund German yields two basis points and returns to 0 , 53% thus leaving the spread unchanged at 104 basis points. Shrinking the cost of the ten-year French debt Oat which marks a yield of 0.85% (-1 bp) and the performance of Bono Iberian, which gives 3 points base and back to 1.78 percent.

A note of Italian Ministry of Economy points out that in the light of the opinion of the European Commission, the Minister Padoan considers it important that “the European executive recognizes that thanks to the policies of the Government, based on structural reforms and fiscal policies geared to growth and employment, the recovery that occurred in 2015 accelerates in the next year, thus contributing to the decline in debt. ”
In the light of the opinion – the statement continues – the Minister confirmed that “the budget in 2016 was built in a manner consistent with the Stability and Growth Pact, meeting the requirements set by the Commission for the application of the scope provided “.

Pier Carlo Padoan also emphasizes that” the communication on the flexibility of the Commission aims to encourage investment and structural reforms and Italy are taking this opportunity to carry out a program of structural reforms along with unprecedented investments aimed at improving the productive capacity of the country. ”

The 2016 budget would risk according to the Commissioner for Economic and Monetary Affairs Pierre Moscovici EU to breach the deficit ceiling imposed on Europe, but Brussels believes that the beautiful country deserve to enjoy the flexibility required because of reforms put in place. A decision will be taken in concrete next spring.

At the risk would be particularly budget Austria, Italy and Lithuania whose budget plans are likely not just to comply with EU demands.

‘”warning” must be contextualized within the framework of the opinion on the budget plans of the entire eurozone released by the Commission. Are well five countries under excessive deficit procedure , for three of these ( France , Ireland and Slovenia ) draft budget have been voted in line with the stability and growth pact. For the fourth country with excessive deficits to GDP, the Spain , already a negative opinion was expressed in October and today is not that the government forecasts are consistent with the European guidelines.
The fifth country “not compliant”, the Portugal , the government has not yet presented Europe with a budget plan.

As undergoing an economic adjustment plan did not present the draft budget for 2016 even Cyprus and Greece .

European picture is still encouraging with a deficit of the Eurozone slipped from 2.4% in 2014 and 1.9% in 2015 and, according to forecasts contained in the government budget so far presented, intended to shrink further to 1.7% in 2016 (in line with the autumn forecast of the Commission.

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