Italy/Germany bond yield spread under 100

Known in Italy simply as “the spread”, the Italy/Germany bond yield spread has been haunting Italy since 2011, becoming a veritable obsession.

For the first time since 2011, “the spread” decreased under the psychological value of 100, just as the National Institute of Statistics was announcing that the Italian GNP had started to grow again.

The truce in the financial warfare fought by Italy can be attributed to different factors: the dramatic decrease in the price of oil, the Quantitative Easing program finally started by the European Central Bank and the consequent depreciation of euro, the physiological rebound after so many years of recession.

One could also give some credit to the reforms enacted by Mr Renzi’s Government despite the fact that the main one, id est the Jobs Act, is not yet in force.


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