Italian PM Draghi says unfortunately political parties have growing desire for division, last week's confidence vote marked the end of the trust in the coalition. The only way to stay together is to rebuild our pact, Italian public is asking for

• It will be impossible to demand new common crisis management instruments if Italy does not show how EU funds will be spent.


• Plans to lower income tax and rationalise sales tax.


• Need to move towards the introduction of a minimum wage.

Reaction details (09:05)

• Amidst the initial commentary from PM Draghi, BTP Sep'22 lifted from 124.02 to a 124.79 session high. And the BTP-Bund yield spread dropped towards the 200bp mark.

Analysis details (09:05)

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• Note, the introduction of a minimum wage has been one of the main demands of Conte's Five Star Movement, though the measure has been subject to opposition from other parties. Reminder, the current political turmoil was largelly sparked by M5S abstaining on the cost-of-living vote last week, due to them being unable to support the package - crucially, they retained confidence in the overall government.

20 Jul 2022 - 08:59- Fixed IncomeEconomic Commentary- Source: Newswires