FX.co ★ Italy's BTP Yield Rises Toward Fresh 3-Year High

Italy’s 10-year BTP yield climbed above 4.60%, nearing a new three-year high, amid persistent concerns over Europe’s fiscal outlook and mounting social unrest across the continent. Mass protests in France remain in the spotlight, while demonstrations in Milan over the rising cost of living are also drawing attention. In southern Italy, truck drivers and farmers are protesting elevated fuel prices, causing food shortages in the region and prompting Premier Meloni’s cabinet to consider new aid packages for the agricultural and transport sectors.

The unrest is reinforcing worries about Italy’s fiscal stability ahead of next year’s elections, with the country’s debt burden projected to overtake Greece’s as the highest in the eurozone. The draft budget foresees the deficit widening to 3.4% of GDP in 2027 from 2.9% this year. Proposed measures include new contributions from banks and insurers—though details remain under negotiation amid strong industry resistance—alongside possible household tax relief and higher spending on defence and energy.