Halister News

(Bloomberg) -- The likelihood of an Italian referendum on labor-market reform approved by Renzi government is negative news as it puts at risk one of the most important bills the nation approved over the past few years, Fabio Fois, economist at Barclays, writes in client note.

• It increases the probability of snap elections being held in the 2Q next year
• Government might unravel the Jobs Act reform; still this option would be politically unpalatable as the ruling PD party is unlikely to amend the “poster child” reform of its mandate, especially after the rejection of the Senate reform
• NOTE: Italy Vote Likely in 2Q to Avoid Referendum on Job Reform: HSBC