September 22, 2018 / 8:37 AM / a month ago

Bank of Italy head says higher deficit spending without growth could put debt on unsustainable course

VARENNA, Italy, Sept 22 (Reuters) - Any increase in deficit spending that does not help boost structural economic growth could put Italy’s debt on an unsustainable course, the head of the Bank of Italy said on Saturday.

Speaking at a conference, Ignazio Visco said that given Italy’s current public finance conditions, any recourse to deficit spending should be done cautiously.

He said any budgetary expansion accompanied by a fall in investor confidence could have a particularly marked impact on Italian interest rates.

Reporting by Giulio Piovaccari, writing by Stephen Jewkes

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