Nowotny, ECB, worries about the level of Italian debt: every day

VIENNA (Reuters) – The level The debt of Italy is a source of income. and the situation will not become easier next year, when it is not so easy to get money from the European Central Bank, said the ECB member, Ewald Nowotny.

Italy's public debt was over 130% of GDP last year, the highest level of the eurozone after Greece, but the Italian government is trying to increase spending to generate faster economic growth, in violation of EU rules. [19659005] "Italy is in a much better position than Greece, but the level of debt is really worrisome," Nowotny said in an interview with Austrian newspaper Kurier, published on Saturday.

Concerns over Italy's budget proposals contributed to the widening of the gap between 10-year German and Italian benchmark bonds, which peaked at five-and-a-half years, then, on Friday, the rating agency Moody's lowered the sovereign rating of Italy by one notch, just above garbage status.

In 2018 and 2019, Rome will have to borrow about 380,000 million euros ($ 438,000 million) in the capital market, said Nowotny, director of the Austrian central bank.

"But someone has to buy these government bonds, and sometimes this is only possible with higher interest rates." This, in turn, adds to the budget deficit. "he explained.

While the ECB's bond buying program will end this year, the biggest buyers will be Italian banks, added Nowotny, who said that "interdependence is essential. "

(1 dollar = 0.8686 euros)

(Report of Kirsti Knolle, edited by Patricio Abusleme)