2018-10-03 — cnbc.com
Claudio Borghi, who leads the economic policy of the ruling Lega party, cast doubt over Italy's membership of the single currency on national radio Tuesday. "I am truly convinced that Italy would solve most of its problems if it had its own currency," Borghi said in a radio interview, Reuters reported.
His comments prompted the yield on the 10-year Italian bond to rise to 3.40 percent at about 8 a.m. London time -- its highest level since March 2014 and going beyond the levels seen during a sell-off in May when concerns over Italy's commitment to the euro zone came to the fore.
Markets have kept their focus on Italy as the new populist government prepares it first budget. There are concerns that increased public spending will derail the reduction of public debt -- which amounts to about 2.3 trillion euros ($2.6 trillion).
The coalition government in Rome is formed by two euroskeptic, anti-establishment parties. Borghi's comments on Italy's membership of the euro zone are not the first to come out of the right-wing Lega party. It has made similar comments in favor of leaving the euro zone before the election in March, but it toned down the rhetoric on the controversial issue as the vote approached.
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