i think it's absolutely dangerous you know the debt to g.d.p. ratio is more than one hundred thirty percent of g.d.p. that means more than double as high as. at the maximum there is a big problem and insofar you have to bring down the accumulated level of debt to g.d.p. ratio and therefore the previous as a government promise to bring down the deficit that means the amount of new debt. down to zero point eight percent of g.d.p. and now the government wants to make more deficit up to two point four percent and this makes sure unfortunately that the debt to g.d.p. ratio in the future will not decline and this is a big big risks. you're kind of the chief economist of come out one joining us from frankfurt thank you. the uncertainty over breaks it is giving french customs officials a headache at the moment trucks are still able to travel in and out of the u.k. without hindrance and the rules governing the feel strange of goods in the e.u. but when britain leaves the import and export duties are put in place customs officers and french ports will have to b

i think it's absolutely dangerous you know the debt to g.d.p. ratio is more than one hundred thirty percent of g.d.p. that means more than double as high as the mastery treaty allows at the maximum this is a big problem and insofar you have to bring down the accumulated level of debt to g.d.p. ratio and therefore the previous as a government promise to bring down the deficit that means the amount of new debt down to zero point eight percent of g.d.p. and now the government wants to make more deficit up to two point four percent and this make sure unfortunately that the debt to g.d.p. ratio in the future will not decline and this is a big big risk. here kind of the chief economist of come out sponge joining us from frankfurt thank you. thank you. among the many headaches caused by briggs it for its exit from the e.u. a very particular one regards the british overseas territory of gibraltar the tiny land strip of barely seven square kilometers is located at the very south of the iberian peninsula bordered to the north by spain now and britain leaves the

basic income more than one goes back into the economy and because of these very important to to g.d.p. ratio is already more than one even a one to why increase in basic to a beat eight. ratio just out this is how the math work at it again is not what you see even higher than that this will be an improvement east much more substantial investors are already selling italian debt borrowing is already getting more expensive do you think. do you think your government is doing a good job there or all all in all to make the difficult for yourself right now. you know all this short term and maybe a big circle into because the market as we said they need to days to digest the diff will explain every forms and a plan and it's not a one page documents by prolonged optimise all the time into the marketplace but to do not expect it what i would have been increasing the yield of the last few days or actually we have a big coming up over foreign direct investment into industrial cotton we have one of the longest or historical wife manufactory need to lead and to be bought by where we are sad should be invo

would fall below two percent by two thousand and twenty one and he had that the national debt to g.d.p. ratio would decline as well he also dismissed any suggestion that italy would leave the european union or the euro zone. read my lips. no chance no way to get it there's no way to get out of. many italian support runs tough stance against brussels and hope the increased spending will help kick start the economy. and i think all the election promises were kept so they did just fine even keeping their stance with europe which i think is the fundamental battle. going on in value not your pay i think that europe does not have to tell us what we have to do. because they are prejudiced against us the stopping comparison to other european countries may not to call for them to expect us to praise europe. on tuesday the european commission is set to discuss and decide the next steps in the procedure first italy's proposed budget for next year. now for more on this topic we're joined by dr john whittaker an economics researcher and professor at lancaster university in the u.k. and dr whitaker italy s

that the national debt to g.d.p. ratio would decline as well he also dismissed any suggestion that italy would leave the european union or the euro zone. read my lips. no chains no way to get it. there's no way. you know so. many italian support runs tough stance against brussels and hope the increased spending will help kick start the economy. and start and i think all the election promises were kept so they did just fine even keeping their stance with europe which i think is the fundamental battle. about that your home in value not your face i think that europe does not have to tell us what we have to do also because they are prejudiced against us and comparison to other european countries. to yet another story weighing on traders' minds today a big drop in buy a stock is dragging down frankfurt share as a judge up holding a verdict finding its new acquisition monsanto liable for not warning the school grounds keeper that its weed killer could cause cancer but the us judge did cut the damages bill from about two hundred

form to tightening fiscal space in most countries start to defy to the last crisis we that to g.d.p. ratio of our of thirty forty fifty percent only some then that the countries stuff there from a higher level but most countries now have been debt to g.d.p. nation in the hundred percent space the us being one but that would be fronts it could be day u.k. could be other countries that have been virtually. been fiscally beatrice in that in the past so once they have to up lie those instrument fiscal and monetary policy they might find less and less policy space in other jurisdictions and in particular in europe then it has been a song to some phone involved against the dipali says that what i'm up to to find a crisis in particular their standard to measure is that what i know that which means that if more of those policies were to be adopted into. nations mine not be as innocent as they were going to cost mr rosen let me stop you for a second here because we need to take a very short break but i hope we will come back to this discussion and look into the implications of that potential econom

that the national debt to g.d.p. ratio would decline as well he also dismissed any suggestion that italy would leave the european union or the euro zone. read my lips. no chance no way to get it alexy there's no way to get out. you know so. many italian support runs tough stance against brussels and hope the increased spending will help kick start the economy. and i think all the election promises were kept so they did just fine even keeping their stance with europe which i think is the fundamental battle. not your pay i think that europe does not have to tell us what we have to do also because they are prejudiced against us and comparison to other european countries not to confront it and expect a yes get by zero. on tuesday the european commission is set to discuss and decide the next steps in the procedure for assessing italy's proposed budget for next year . now for more on this topic we're joined by dr john whittaker an economics researcher and professor at lancaster university in the u.k. now dr whitaker italy says i

of growth there and also he was also keen to highlight as well the the reduction in the debt to g.d.p. ratio as well something which has been a core part in tackling for the the conservative government here for the best part of this decade as well so with all that in mind he did also underline that this would enable him to create a more stable financing situation for the health service for example something which the which has been a cause for concern and in it he outlined a ten year plan with that would take place as well as some other infrastructure plans so all about highlighting what he calls the positive but of course all about goes out of the window should there be a no deal breck's it situation that would take place later in the air and sun here of course all of this kind of goes out the window if there is no deal a breakfast that struck me how much insecurity is this particular issue causing are some people just not taking this budget seriously. well the thing is barbara's also that there is not. much money yet really to play around with for the finance minister to be able to push fo

italy's debt-to-g.d.p. ratio is around 130% more than double he 60% limit of the e.u.ouldn'te insists his budget -- conte's insisting this will help the poorest italians, and support pensioners and reduce ket. he made it very clear today there is no plan b on the budget cap. let's listen to what he told bloomberg. looking forward to sitting around the table and talking with them. of course if they are going to ask me to change the measures it will be difficult for me because i cannot accept that. >> shortly after this interview ended the e.u. officially reject editly's budget plan and order editly to revise its spending plan. italy's debt load is the second highest in europe after greece. that is another reason people are concerned about where this could lead. yvonne: right. kathleen, i think a lot of questions that we ask here in this part of the world, if i'm not in europe should i care? how big a risk is it? we could see a financial meltdown in italy and that could spread across europe and even go further. kathleen: let's start with a couple things we know. moody's

spent on investments and you know i think worst analysts this so far are focused on these a ratio of back to to g.d.p. leap but we just from an emphasis on the rate that we do want to focus more on the lower side of the equation that they know we need that growth in the army which i think that is the only credible and sustainable way to turn a country into a sustainable capital the long term so i do believe that once these issues that are in fact i don't lease that there's a whole you and i both will fully understand if we appreciate that goal and the goal of our plan b. you've talked about growth the you base the promises on you for cost assuming economic growth of one point five percent next year the european commission expects its allowed to grow one point one percent and your own accounting boost of the main lobby group representing the talian business this week cut down its own growth forecast to zero point nine percent is that still you still believe above that i think so because the dogs numbers that you mange of the one percent have come now before document has been fully released and so does

in may experience and you know i think whilst annalise this so far i have focused on the ratio of back to two g.d.p. leap but we just from the emphasis on the numerator. we do want to focus more on the lower side of the equation had been obviated growth in the economy which i think it is the only credible and sustainable way to turn a country into a sustainable path for the long term so i do believe that once the issue is that are a fact that i don't lease that and the whole you and i both will fully understand if we have appreciate that skull and all of our plan b. you've talked about growth the brace the promises on new for cost assuming economic growth of one point five percent next year the european commission expects its allude to grow one point one percent and your own a constant there the main lobby group represent the tally in a business this week cut down its own growth forecast to zero point nine percent is that still you still believe a bull that i think so because those numbers that you mange of the one percent have come out before documenta has been fully released and sold does not inc