EU's Moscovici: Italy must cut ‘explosive debt’

‘Not in our interests’ that Italy doesn’t respect EU budget rules, commented the EU Economics Commissioner Pierre Moscovici.

Additional quotes:

   •  Will be able to respond to Italy's budget proposals after 15th October.
   •  No interest in triggering Italian crisis.
   •  Italy must cut ‘explosive debt’.

Meanwhile, Italian bond yields surged in early trades as investors digested the news of a 2.4% budget deficit target, with the spread between German-Italy 10-year bond yields rising to a three-week high and eventually weighing on the shared currency.