- Title: Italy needs reform, Renzi tells financial markets ahead of referendum
- Date: 28th November 2016
- Summary: ROME, ITALY (NOVEMBER 28, 2016) (REUTERS) ITALIAN FINANCE MINISTER, PIER CARLO PADOAN, AND PRIME MINISTER, MATTEO RENZI, ARRIVING FOR NEWS CONFERENCE NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (Italian) ITALIAN PRIME MINISTER, MATTEO RENZI, SAYING: "To the financial markets we say that we have always received the message that structural reforms are the principal asset for the future of Italy, I think everyone has always said this everywhere. And we think that structural reform is what this country needs and Italians will decide if they agree or not, on the simplification of institutions that we have proposed. " MEDIA FILMING (SOUNDBITE) (Italian) ITALIAN FINANCE MINISTER, PIER CARLO PADOAN, SAYING: ".... As the prime minister said earlier, it is obvious financial markets do not love uncertainty. Uncertainty in these times has increased and not only in Italy. They (the financial markets) are watching with perplexity the possibility that economic politics instigating reform, that has been rewarded in these last two years, if we look at the valuations on the financial markets regarding Italy they have been rewarded as they have been judged sustainable, judged important also for the financial stability, that they are being basically called into question in some regard. But I do not think they will be." MEDIA (SOUNDBITE) (Italian) ITALIAN FINANCE MINISTER, PIER CARLO PADOAN SAYING: "The article by the Financial Times is an article that puts together many things, maybe it was Monday and they didn't have anything else to say." (SOUNDBITE) (Italian) PRIME MINISTER MATTEO RENZI SAYING: "Obviously we confirm our great esteem for the Financial Times." MEDIA FILMING RENZI LEAVING NEWS CONFERENCE
- Embargoed: 13th December 2016 16:30
- Keywords: Italy Renzi Padoan banks referendum
- Location: ROME, ITALY
- City: ROME, ITALY
- Country: Italy
- Topics: Government/Politics,Elections/Voting
- Reuters ID: LVA0015AD06YV
- Aspect Ratio: 16:9
- Story Text: Prime Minister Matteo Renzi said on Monday (November 28) financial markets should not be worried by Italy's referendum on constitutional reform that will take place at the weekend.
Opinion polls predict Renzi's defeat in Sunday's referendum, in what would be the third big anti-establishment revolt by voters this year in a major Western country, following Britain's unexpected vote to leave the European Union and the U.S. election of Donald Trump.
"To the financial markets we say that we have always received the message that structural reforms are the principal asset for the future of Italy, I think everyone has always said this everywhere," Renzi told reporters at a news conference in Rome.
"And we think that structural reform is what this country needs and Italians will decide if they agree or not, on the simplification of institutions that we have proposed," he said.
Renzi has promised to resign if he does not win the December 4 referendum, opening the way for renewed political instability in the eurozone's third largest economy.
Finance Minister Pier Carlo Padoan told the news conference that he did not think there would be instability if the constitutional reform was to be carried out.
Renzi has said the referendum would bring about changes that would end parliamentary deadlocks and help the long-stagnant economy. Opponents say the reforms would weaken democracy and concentrate too much power in the hands of the country's prime minister.
The Financial Times newspaper reported on Monday (November 28) that eight of Italy's banks may collapse if Renzi lost the referendum.
After assuring markets that he believed stability would be maintained, Padoan added: "maybe it was Monday and they didn't have anything else to say."
Fears that a Renzi defeat at the referendum could sink Italy's oldest bank Monte dei Paschi's recapitalisation plan and have a domino effect on other lenders - including another seven already in trouble - pushed the banking index down 2.4 percent on Monday (November 28).
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