Pavel Bandilov for the assessment of the EC and ECB for the readiness of BG for ERM2, the financial quake with the Tr pound, the new populist power in Italy
Italy bet on a government that plans to run not with a programme, but with a manifesto. It is expressed in a tax reduction and a number of reliefs for citizens by completely ignoring the country’s revenue. Markets reacted with an increase in local securities yields by about 0.7%. And that was just a warning. With the country’s debt to GDP ratio above 130%, raising the debt price is the last thing Italy needs.
In Turkey, once again, President Erdogan before Bloomberg put the central bank’s independence at stake. Apparently, he thinks he can run the institution a lot more professionally. In the first quarter, the Turkish population bought gold for over 950m dollars, which is more than 30% growth compared to purchases in the same quarter last year. Turkey’s CB itself has doubled the purchases. In this situation, the pound needs action, not slogans.
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