Czech Finance Minister Andrej Babis says he wants to manage public finances in the same way he ran his $12 billion business. Bondholders approve, awarding the three-month-old government with the lowest yields since May.
The Czech Republic’s credit rating may be increased if the new government delivers on its promise to cut the budget deficit, Moody’s Investors Service said, pushing the koruna up as other east-European currencies fell.
Investors paid little attention to Italy’s political intrigue this month, focusing instead on early signs of economic recovery and the outgoing government’s commitment to budget rigor. That may start to change.
Hungary’s fiscal plan unveiled this week supports rating the country’s debt at the lowest investment grade and remaining risks justify keeping the outlook negative, Moody’s analyst Dietmar Hornung said, according to Reuters.