Time.news – In the European chancelleries they breathe a sigh of relief. As well as on the upper floors of the large financial institutions that hold a large part of the Italian public debt. The confirmation of the Mattarella-Draghi ticket, in fact, is guarantee of stability and continuity. And above all of trust. “Trust in finance is practically everything,” explains an analyst.
E the uncertainty in the last period was beginning to be felt. Because the Quirinale match, this time, was closely linked to that of the government. The common citizens knew this as well as the investors of the large funds and investment banks that every day make global finance move.
The spread, a thermometer of confidence
For Italy, the spread represents the barometer of this confidence. And in the last month some fever lines had been registered, with the differential going from 130 basis points at the beginning of the month to almost 150 basis points (148 pp) on Thursday 27 January.
Of course there are other factors at play as well. First of all the end of the ECB’s pandemic program (the Pepp, Pandemic emergency purchase program, worth 1,850 billion euros), next March. But in the “button rooms” they are ready to bet that political stability also brings financial stability.
In one year for ftse mib + 21%
As a further demonstration of this – since the Draghi government, the main index of Piazza Affari, in office, the Ftse Mib has gained 21.72%. Certain it’s not just about mister ‘whatever it takes’. In the last year, the economic and financial rebound has been registered all over the world together with the reopening of activities, vaccinations and the resumption of an almost ‘normal’ life.
The match of the Pnrr
Then there is the game of the Recovery fund. The race in stages in which Italy is committed to not lose the 191.5 billion (68.88 billion in grants and 122.6 billion in loans). In 2021 Italy reached the 51 objectives of the National Recovery and Resilience Plan (Pnrr) agreed with the European Commission expiring on December 31, 2021. During the press conference at the end of the year, Draghi underlined how “it is necessary to demonstrate that trust of the other European countries, shown by giving Italy these funds, has been well placed “.
The trust that Europe will have to have in Italy. In fact, in 2022 another 102 goals will be achieved to secure the second and third tranche of European funds, in all 40 billion.
Government coupon?
Of course not everything is defined. In the government majority, one of the ‘weighty’ parties like the League asked Draghi for a new phase of government so that the last year of the legislature does not turn into a permanent election campaign. “To tackle this new phase, a fine-tuning is needed: the government with its majority should adopt a new type of working method that allows us to constructively deal with the many dossiers, even divided, in order not to transform this year into a a very long, harmful electoral campaign that does not serve the country “, said the minister of economic development Giancarlo Giorgetti at the end of a meeting with the secretary of the Lega Matteo Salvini. A demonstration that, even if in stability, this last week of voting for the Quirinale, some news in the government will bring it. AND on Monday the markets will start judging us again to see if the trust granted is well placed.