As the Greek government promises pension hikes and tax cuts, economist Markus Will from the University of St. Gallen wonders how the country will create more growth to eventually reduce its alarming GDP-to-debt ratio.
Brussels has asked the Italian government to explain its lack of progress in reducing debt. Italy's populist government is accused of exposing the bloc to financial problems by ignoring budget discipline rules.
The European Commission has for the first time ever rejected the budget of a member state, as it said the spending plans of Italy's populist government were violating the bloc's debt limit and needed revision.
Ambitious spending plans by Italy's new coalition, and potentially a political unknown as prime minister, have put investors on edge. Some commentators think the effects will also be felt by the entire eurozone.
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