The Bund-BTP spread is widening again. From around 240bps between the German and Italian 10-year government bonds in April, we’re back above 280bps and coming close to this year’s high of 287bps. Obviously, we don’t need to look too far for an explanation. Mr Salvini, the leading Italian politician, is defying EU fiscal rules. He challenges the 3% budget deficit rule and argues why debt-to-GDP should come down from the current lofty levels.