Italy to Stay in Euro, Cut Debt

Italy’s new government has no intention of leaving the euro and plans to focus on cutting debt levels, Economy Minister Giovanni Tria said on Sunday, looking to reassure nervous markets, CNBC reported. In his first interview since taking office a week ago, Tria told Corriere della Sera newspaper that the coalition wanted to boost growth through investment and structural reforms rather than via deficit spending. “Our goal is (to lift) growth and employment. But we do not plan on reviving growth through deficit spending,” Tria said, adding that he would present new economic forecasts and government goals in September. “These will be fully coherent with the objective of continuing on the path of lowering the debt/GDP ratio,” he said, confirming that he aimed to meet existing 2018 and 2019 debt reduction targets. Italian government bonds have come under concerted selling pressure in recent weeks on fears the new government will embark on a spending splurge that it can ill-afford. Investors also worry that euro-sceptics within the administration might look to push heavily indebted Italy out of the eurozone.