Week ahead

Also Interesting

• December 2017 Leveraged Finance Review
• Stock price cycles and business cycles
• Does carry add value to existing credit factors?

IT – EC deems excessive deficit procedure justified

This week, the European Commission completed its assessment of the draft budgets of the EU countries for 2019 and beyond. In view of the intense disputes between Brussels and Rome, the markets focused on the Commission's summary of Italy. The Commission has come to the conclusion that Italy does not fulfill the debt criterion (which provides in the planning horizon for a gradual reduction in the debt ratio until a level of 60% of GDP is reached), which warrants the initiation of an excessive deficit procedure based on the rules of the Fiscal and Stability Pact.