ROME: Italian Economy Minister Pier Carlo Padoan said on Friday that the result of an upcoming referendum will not put the country in the eye of a new debt storm like the one that nearly pushed the country into default in 2011.
In nine days, Italians will vote on Prime Minister Matteo Renzi's flagship constitutional reform, which he says will strengthen future governments by curbing the powers of the Senate.
Opinion polls show the 'No' vote well ahead and government bond yields have been rising on fears of renewed political instability in the euro zone's third-largest economy.
Financial markets "fear" the government will fall if the 'No' vote wins, but he does not expect a repeat of 2011 because "the economic fundamentals have improved greatly," Padoan said in an interview on SkyTG24 TV.
The passage of Italy's 2017 budget will not be affected by the referendum and will be completed by the end of the year, he added.
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