Italy could be next Greece if it raises spending, says Maltese finance minister

Italy could trigger another sovereign debt crisis like Greece did in 2010 if the policies of the new Italian government, now being formed, focus only on more spending, Maltese Finance Minister Edward Scicluna said on Thursday.

“If … it is just a question of spending and spending and borrowing and spending then unfortunately it will be a replay of Greece,” he told reporters on entering a meeting of euro zone finance ministers in Brussels.

Euro zone governments and financial markets have been alarmed at the impending arrival of a new coalition in Rome under Giuseppe Conte comprising two eurosceptic, anti-establishment parties, who won votes in a March election by calling for an easing of euro zone budget discipline and public debt rules. [Reuters]