Mixed signals from Italy’s new government

Italy’s new prime minister, Giuseppe Conte, gave his maiden speech to parliament this week, and his comments riled the markets. After all, he reiterated the Government’s intentions to cut taxes significantly and introduce a minimum citizen’s income, both of which would be very expensive. That said, other parts of the speech were more moderate, particularly on Italy’s place in the euro. And there have also been suggestions this week that the government’s more costly policies will not be implemented for several years.