MILAN (AP) — Investors have reacted with calm to the new Italian budget draft that delivers on electoral promises to restore pensions to thousands whose retirement age had been pushed back and the creation of a basic salary for some job-seekers.
The difference between Germany's 10-year bond and Italy's equivalent remained stable Tuesday at a little more than three percentage points, hours after the populist government agreed on the budget plan. The so-called spread is an indicator of investor concern.
Italian leaders say the budget plan will boost growth through higher spending. However, other European Union countries have raised concerns that the increase in Italy's budget deficit to 2.4 percent of the country's annual GDP will increase debts.
Italy's economy minister, Giovanni Tria, said the budget "would not make Europe fall apart."
