Italy's Budget Deficits Put Credit Rating at Risk by Threatening ECB Bond Support

Italy's higher budget deficits could make it ineligible for ECB bond support, threatening its credit rating.

ECB eligibility is key for Italy maintaining its current credit rating.

Italy faces scrutiny from rating agencies in Oct-Nov, a key test for bond yield stability.

An early end to ECB bond buying would force Italy to find new buyers for €50B of debt.

Delays in EU recovery funds and lack of fiscal reform could raise Italy's deficit and debt risks.