Italy's Padoan sees no impact on public finances from referendum

2016-12-02T070607Z_1_LYNXMPECB10A4_RTROPTP_3_ITALY-REFERENDUM-RENZI.JPG
Italy's Finance Minister Pier Carlo Padoan speaks during a news conference at the Chigi Palace in Rome November 28, 2016. REUTERS/Tony Gentile

MILAN (Reuters) - There will be no impact on public finances if Italians reject a referendum on constitutional reform on Sunday but there could be "48 hours of market turbulence", Italy's economy minister Pier Carlo Padoan told daily newspaper Avvenire on Friday.

Asked if a No vote would make it more difficult to achieve growth of 1 percent in 2017, making an extra budget necessary, Padoan said "no, I do not see any impact from a No vote on public finances."

The minister said there was no risk of any "financial earthquake" from the vote even though markets could be unsettled for 48 hours.

"But then, as with Brexit, the fog will lift and normality will return," he said.

Padoan said there was no systemic risk for Italian banks, adding financial analysts believed a No vote was priced in by the market, meaning a Yes vote could only be good news.

"Should there be a different scenario we will evaluate whether some kind of intervention is needed."

Asked about troubled lender Banca Monte dei Paschi Padoan said it would return to being a "dynamic and competitive bank" after its planned capital increase.

(Reporting by Stephen Jewkes)

We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue
Help us moderate this thread by flagging comments that violate our guidelines

Comment policy:

Philly.com comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by Philly.com staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Load comments
Continue Reading