The battle rages on...
- Italy needs to show that it complies with fiscal rules to avert disciplinary action
- EU is ready to move forward with procedures over Italian debt if there are no new commitments from Rome
The back and forth remarks between the Italian government and the European Commission over the past few weeks have basically gone in the left ear and out the right ear of market participants. With Italy still not willing to play ball, it'll come down to if we'll see the commission announce a fine against the government.
I reckon only when we come to that will markets start paying attention again.