Just like with the Irish border problem in the Brexit case, the EU has been having another major issue with the Italian budget plan for 2019. We have increasingly heard negative comments from EU officials and European politicians on the Italian budget draft for next year and financial markets got the idea that the Italian budget wouldn’t pass the European Parliament.

But we heard some positive comments in Foglio, an Italian paper, where the two main Italian leaders are considering lowering the deficit for next year’s budget. The main two leaders are the two populists, Mateo Salvini and Luigi Di Maio, which is not a bad thing in my opinion.

According to that article, the deficit for 2019 will be reduced from 24% to 21%. The fight between the two for a tax amnesty continues, so I don’t know where the reduction in the deficit will come from. But, these are some positive comments and the Euro likes it as EUR/USD has climbed nearly 100 pips today from the lows.