The governor of the ECB Mario Draghi he visited the president of the republic Sergio Mattarella. He was in Rome for some institutional activities and wanted to meet the Head of State to launch some warnings, "Watch out for the maneuver. Do not underestimate the spread and the stock exchanges". The governor's fear is due to the forthcoming term for providing liquidity through “Quantitative Easing”, which will end on 31 December.
There will be around 80 billion a month missing, the European Central Bank can now buy bonds for only 15 billion. The program will continue to keep prices calm thanks to the reinvestment of the stocks already purchased, but it is a negligible effect compared to a possible wave of sales. In short, by now the tools available to Draghi are finished, from XNUMX January Italy will be without adequate external support.
In case of difficulty, Italy would have the OMT as its only lifesaver, the instrument of financial support that would force Rome to a program agreed with the European Commission and the State-saving Fund, or the country's commissioner.
Concerns were raised in this regard by Mattarella to Deputy Prime Minister Salvini, when he went up to the hill to sign the safety decree. According to parliamentary sources, the leader of the League would have assured the President of the Republic and denied, however, any intention to cause a euro outflow, if anything attributing to others the intention of fueling easy spending.
Faced with the nervousness of the markets, the government had to announce, in the three-year period, a deficit / GDP ratio decreasing, 2,4%, 2,1% and 1,8% and not 2,4% for three years. Few stuff, as in any case there is a risk of Brussels being rejected. And then the turbulence for Italy is not over, which will also have to fear the probable downgrade by rating agencies.
The Bel Paese is in the sights of Moody's and Standard and Poor's. Italy is still two "levels" above the "junk" judgment and, luckily for us, as long as the judgment of the last of the four big agencies, the Canadian Dbrs will still be "investement", the country does not run the risk of being cut off from the entire Frankfurt financing system, as is well known, which is essential for banks' operations.
But the single downgrading of the two larger agencies would constitute a figure that could create incalculable damages, amplifying the mistrust on the markets.