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The FT article I linked above is a continuation of this story from TCLA Premium. Worth a read for some background:



In short, the Italian government believes it can revive the Italian economy through higher spending (rather than austerity measures). In the article I linked above, they even suggest this could be a recipe for reviving the rest of Europe. The deputy prime minister points to the US where tax cuts and higher spending has contributed to growth in the US.


But investors aren't convinced. Borrowing costs for Italy has increased reflecting concerns that the Italian government wants to leave the eurozone.


This is great for further reading on whether countries should follow Trump's spending policies: https://www.schroders.com/en/insights/economics/should-other-countries-take-a-leaf-out-of-trumps-economic-playbook/


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