Italian bonds and stocks fell sharply on Thursday (Jul 21) after Italian Prime Minister Mario Draghi resigned. Because there was no support from members of the coalition government in the vote of no confidence.
Italian bonds and stocks fell sharply on Thursday (Jul 21) after Italian Prime Minister Mario Draghi resigned. Because there was no support from members of the coalition government in the vote of no confidence.
Investors sell Italian government bonds This caused Italy’s 10-year government bond yields to rise 0.14% to 3.51%.
Meanwhile, the bond yield spread between Italian and German government bonds hit 2.24 percent as investors grew worried that Italy will be able to comply with the conditions of the European Commission. to receive 200 billion euros ($240 billion) in aid from the COVID-19 Relief Fund The spread is an indicator of pressure on Italian debt.
Italy’s FTSE MIB stock index fell 1.9 percent to 20,943 as investors worried that Prime Minister’s resignation Draghi will thwart Italy’s economic reform opportunities. to improve the country’s economy to expand efficiently in the long run
Prime Minister Draghi presented his resignation to Italian President Sergio Mattarella at the Quirinale Palace early today. President Mattarella has asked the Prime Minister’s government Draghi assumes the role of an interim government until a new government is formed. Mr Draghi just submitted his resignation last week. but not successful because he was rejected by President Mattarella
for the resignation of the Prime Minister Draghi comes after a key coalition partner declined to participate in a no-confidence vote.
His resignation will lead to early elections in October. And it caused an unstable period for Italy and Europe at a crucial time. Draghi has taken a tough stance against Russia and has been a key force in enacting tough sanctions against Russian President Vladimir Putin.