div > div.group > p:first-child"> The euro zone's third largest economy has struggled to convince investors that it is on a sustainable fiscal path. Since the anti-establishment government came into power last June, concerns have risen about Italy's ability to repay its debts.
These concerns have been mirrored into rising yields on Italian government debt – the higher the yield, the riskier the investment is perceived. For instance, the yield on the 10-year Italian paper peaked last May from below 2 percent to about 3 percent in a matter of days, on the back of the possibility that two anti-establishment parties were about to take power. The same yield is now trading at about 2.7 percent – still one of the highest in the euro area.
"I see a lot of international appreciation for Italy's industrial system and for our economy. We need to boost our own domestic morale even in the shot-term, but I think that our basis is very strong," Tria, who is a technocrat and not a member of any of the coalition parties, said.