Citi sees potential risks from centre-right win in Italian September elections

Italy's centre-right bloc seems to be clearly headed towards an absolute majority at the elections due to take place on 25 September, Citi said.

The broker cited the country's "peculiar" electoral system and stable, elevated support for the centre-right for the likely outcome, according to Dow Jones Newswires.

But whereas markets appeared to be relaxed about political risk in Rome, Citi warned that, the more conciliatory attitude towards Brussels aside, when compared to 2018, "collisions with Brussels in the future are a risk".

"Rather than an inconclusive election, the main risk here in our view is that the bloc garners a two-thirds majority, allowing changes to the constitution without [a] referendum."