Italian central bank governor warned today the new government in the country to be caution in the public accounts to avoid weakening financial markets and increasing public debt.
Ignazio Visco, Italy's central bank governor, said Italy's reform efforts had faded and if the country hit by a new financial crisis, Italy would be weaker than it was 10 years ago.
The ruling coalition 5-star movement and Legia are planning to cut taxes and increase social welfare spending, but Visco said market tensions and Italy's huge public debt would lead to a cautious approach.
