Italy Starts 2026 Financial Reforms as Bond Spreads Hit Historic Lows

New rules for employee severance pay and pension funds took effect as the Italian Treasury prepares to issue 38 billion euros in government bonds during the first quarter of 2026.The Ministry of Economy and Finance aims to leverage a narrowing spread with German Bunds, which currently sits at 66 basis points with projections suggesting a drop to 50 points.Upcoming debt sales will include instruments for small savers like BTP Più, while labor reforms introduce greater flexibility for private and public sector liquidation payments.