Trump Offered the Italian government to buy Bonds. US President Donald Trump has proposed assistance to the Italian government by purchasing Italian government bonds.
According to reports on Friday from anonymous sources.
Trump would have made the offer at the end of July when Italian Prime Minister Giuseppe Conte was in Washington.
According to the reports, the US government could start buying up government debt at the end of December.
It is in line with the end of the purchase program of the European Central Bank (ECB).
Although the ECB mainly wants to increase inflation to a higher level with the buy-back program,
it has also ensured that European countries have to pay less on the issue of new debts.
Mainly Italy, which has the highest national debt in the eurozone after Greece, has benefited from this.
Higher interest for an Italian government
But with the budgetary plans of the Italian government and the end of this buy-back program,
the government will have to pay a much higher interest again.
Since the beginning of the year, the interest on a ten-year bond from the Italian government has increased by half.
It does not rapidly lead to an increase in the interest costs for Italy, but for new debts, investors require higher interest rates.
How Trump would buy the Italian government bonds precisely is unclear.
The Federal Reserve has a particular department that buys and sells bonds, but the central bank acts independently from the US government.
Trump has a tense relationship with many European leaders, but in Conte, he seems to have found an ally.
After the meeting in Washington, Conte Trump praised for his controversial performances at the G7 in Quebec and the NATO meeting in Brussels.