Italy's GDP growth has been revised downward in the latest data, highlighting renewed economic fragility in the eurozone's third-largest economy. The comment by Minister Giorgetti suggesting possible policy adjustments in response to the deviation signals potential fiscal or regulatory interventions, which could influence market expectations around budgetary discipline and growth support measures. This raises concerns over widening fiscal imbalances, potentially affecting Italian sovereign bonds and the yield spread over German bunds, particularly if corrective actions delay deficit reduction. The market will focus on the upcoming release of the 2025 budget plan, where any indication of deviation from the agreed fiscal path could trigger repricing in peripheral eurozone debt and pressure from EU authorities.
GDP revised downwards. Giorgetti, I don't rule out moving ourselves on the deviation
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