HomeEconomic IndicatorECB official expresses worries about Italy's bond-yield discrepancy, highlighting potential risks for...

ECB official expresses worries about Italy’s bond-yield discrepancy, highlighting potential risks for the economy.

Gabriel Makhlouf Expresses Concerns Over Italy’s Bond-Yield Spread

ECB Official Raises Concerns over Italy’s Bond-Yield Spread

Gabriel Makhlouf, a representative of the European Central Bank (ECB) and former senior official at the New Zealand and UK Treasuries, expressed concerns about Italy’s bond-yield spread on Wednesday. Makhlouf’s remarks come in the wake of controversial policies implemented by the Meloni government, including a poorly executed attempt to tax banks and a budget that Fitch Ratings has characterized as “significantly loosening”.

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IMF Calls on Italy to Intensify Debt Reduction Efforts

These actions have unsettled investors, prompting Vitor Gaspar from the International Monetary Fund (IMF) to call on Italy to intensify its debt reduction efforts. Gaspar emphasized the importance of addressing the current uncertainties surrounding Italy’s fiscal policies to maintain financial stability.

ECB Equipped with Crisis-Fighting Tool

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Makhlouf reassured that the ECB is equipped with a new crisis-fighting tool to maintain robust monetary policy across Europe. This demonstrates the ECB’s commitment to managing potential disruptions and upholding financial stability in the region.

Return to Stability in Bond Markets Projected

Makhlouf also projected a return to relative stability in bond markets and hinted at a potential increase in borrowing costs during the forthcoming December ECB meeting. Despite the uncertainties surrounding Italy’s fiscal policies, there is confidence in the ECB’s ability to manage any potential disruptions.


The concerns raised by Gabriel Makhlouf regarding Italy’s bond-yield spread highlight the need for the country to address its fiscal policies and intensify debt reduction efforts. The reassurance from the ECB, along with the projection of stability in bond markets, instills confidence in the financial stability of the region. It remains to be seen how Italy will respond to these concerns and whether they will take the necessary steps to maintain stability and address the uncertainties surrounding their fiscal policies.

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