Eurogroup Head Centeno warns new Italy government over 2020 budget - Reuters

In an interview with Reuters late on Saturday on the sidelines of the Ambrosetti business forum, the head of the Eurozone finance ministers (Eurogroup), Mario Centeno, warned Italy’s new government over its draft 2020 budget.

Italy is due to submit its draft 2020 budget to Brussels next month.

Key Quotes (via Reuters):

Italy must “continue in the difficult task of promoting growth with a fiscal policy that faces the restrictions that we all face.

Existing rules were flexible enough and warned the government against using the 2020 budget as a pretext to push for changes.

That could create market difficulties in terms of (higher) interest rates that the Italian government will then have to bear.

The 2020 budget is difficult but I think minister Gualtieri has the means to get things done.

The EUR/USD pair holds steady above the 1.10 handle amid growing German recession fears and European Central Bank (ECB) stimulus hopes. The ECB meets this Thursday to decide on its monetary policy, in the face of lingering trade woes, deteriorating Eurozone growth prospects and mounting Brexit risks.