Germany’s Bundesbank’s monthly meeting didn’t make for particularly positive reading yesterday, stating that the EU’s largest economy will likely continue to contract. It pointed to a ‘downturn in industry’ largely due to falling demand from abroad and the return to normal from the Brexit stockpile rush. Although the country is largely known for its conservative financial policies, Federal Minister of Finance, Olaf Scholz, has said that he would be willing to inject up to $55 billion into the economy if it comes to a crisis
This afternoon, attention will turn again to Italy, as Giuseppe Conte takes to the podium in the Senate in Rome. His coalition partner, Matteo Salvini, has called for a vote of no-confidence against him as Prime Minister. His options are to offer his resignation to President Sergio Mattarella, or to decide to fight the vote. This could lead to an October snap election – and further uncertainty ahead, as a Salvini-led government would certainly find itself facing up to Brussels over its budget. Italy is the third-largest economy in the eurozone, but it also has the second-highest debt-to-GDP ratio, beaten only by Greece.
