Renzi: No alternative budget plan if 'no' vote prevails

Economy | Politics 12/2/2016, 8:28 AM
Renzi: No alternative budget plan if 'no' vote prevails

Italian prime minister Matteo Renzi said on Friday he does not have any alternative budget plan in case of a "no" vote on proposed constitutional reforms in a referendum on Sunday, according to Corriere della Sera.

The comments come after Italian minister of economy and finances Pier Carlo Padoan told daily newspaper Avvenire earlier today that public finances will not be affected if Italians reject proposed reforms, but that there could be some market turbulence.

Most analysts think a "no" vote is already priced in by the market given that it's widely expected, so there indeed could be less volatility and speculation following the Italian referendum than what has been the case with Brexit and the presidential election of Donald Trump in the United States. However, investors are still worried about the impact of the vote on troubled Italian lenders, especially Monte dei Paschi di Siena S.p.A., which is currently undergoing a €5 billion rescue scheme. If a "no" vote on December 4 scares off potential investors, analysts fear the bank might have to be bailed out using taxpayers' money.

TeleTrader Newsroom / IB