Italy and Europe under tension.

Italy has submitted its budget proposal for the year 2019 but it should be rejected by the Commission because it does not respect European rules and increases the country's deficit by 2.4% of GDP. This budget was deemed too expensive by Europe and the Prime Minister invited the foreign media for a press conference to explain his plan. The ruling coalition in Italy will most certainly go to the clash with Europe to respect its election promises.

In view of the tensions and worrying figures of the country (2.300 billion debt, growth of 0.1%, the Milan Stock Exchange which lost 21.4%, ...), the rating agency Moody's has dropped a notch Italy's rating (from Baa2 to Baa3) is just above the speculative grade and Standard & Poor's is expected to do the same on Friday.