Italy's BTP Yield Climbs Amid Social Unrest

Italy’s 10-year BTP yield rose above 4.55%, hovering near its highest level in three years, amid growing social unrest across Europe and concerns over the continent's fiscal outlook. Mass protests in France escalated over the weekend, while protests against the rising cost of living in Milan also turned disorderly, leading to clashes with police. The unrest has added to concerns over Europe’s fiscal stability ahead of next year’s elections, including in Italy, whose debt burden is expected to surpass Greece’s this year as the eurozone’s most indebted country. Its 2027 draft budget deficit is seen rising to 3.4% of GDP in 2027 from an estimated 2.9% this year. It includes planned contributions from banks and insurers to ease fiscal pressures, alongside potential tax relief for households and higher defense and energy spending. Premier Meloni is seeking an agreement on the proposed contributions, with a summit of the governing coalition scheduled for Monday to discuss the approach.