Italy digs in on spending, jolting markets and worrying EU

Italy digs in on spending, jolting markets and worrying EU

MILAN – Italy’s leaders refused to budge from new spending plans that have been spooking investors, pushing the eurozone’s third-largest economy on a collision course with its EU partners.

Deputy Prime Minister Luigi Di Maio said Tuesday that the government "will not back up one millimeter" from spending that will increase the country’s deficit to 2.4 percent of annual GDP, beyond previous commitments.

The government’s plans and subsequent clashes with EU technocrats have jolted investors, who are now charging Italy more to borrow in bond markets. On Tuesday, the yield on Italy’s 10-year bond was up 0.10 percentage point at 3.40 […]

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