Greek FinMin Tries Another Strategy Criticizes Italian Debt

Italy’s finance minister has hit back at criticisms from his Greek counterpart, arguing that the country’s debt is sustainable and structural reforms are steaming ahead.

On Sunday, Yanis Varoufakis, the finance minister in Greece’s increasingly controversial government, singled out Italy as needing a few lessons on national debt levels. The Italian government should be aware that the country could be the next possible victim of debt in the euro zone, Varoufakis added, saying its debt was “unsustainable.”

The comments attracted the ire of Italian Finance Minister Pier Carlo Padoan, who said in a tweet Sunday that Italy’s debt was “solid and sustainable” and that Varoufakis’ comments were “out of place.”

Speaking to CNBC Monday, Padoan reiterated that Italy was in a strong position going forward.

“Italy has large debt but this is getting more sustainable getting forward – this is justified by the recent growth estimates from the European Commission and the structural reforms effort will intensify, also the pension system in Italy is among the strongest in Europe.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza