ECB expects budget deal between Italy and EU: de Guindos

[November 29, 2018]  FRANKFURT (Reuters) - The European Central Bank expects that Italy will eventually adhere to EU spending rules and reach a deal with the European Commission in their standoff over spending, ECB Vice President Luis de Guindos said on Thursday.

Vice-President of the European Central Bank, Luis de Guindos, June 14, 2018. REUTERS/Ints Kalnins/File Photo

"If you start to apply expansionary fiscal policy... markets start to penalize Italian government bonds," de Guindos told a news conference. "What you gain in terms of fiscal expansion for the real economy, can be lost in terms of funding."

(Reporting by Balazs Koranyi; Editing by Raissa Kasolowsky)

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