'I am not frightened about Italy' says European Commissioner top stories direct to your inbox SUBSCRIBE Invalid email Sign up to receive our rundown of the day'sdirect to your inbox When you subscribe we will use the information you provide to send you these newsletters. Sometimes they'll include recommendations for other related newsletters or services we offer. Our Privacy Notice explains more about how we use your data, and your rights. You can unsubscribe at any time. Italian daily newspaper Courier della Sera, citing anonymous Italian government officials, claimed the US President made the proposal to buy Italian sovereign bonds during a meeting with Italian President Giuseppe Conte at the White House last month. One analyst said the proposal could help with any populist plans to leave the euro. Mr Conte has so far not explained exactly what the US offer consists of and the likelihood of it ever materialising. It comes at a time when Rome’s treasury is scheduled to issue a massive £360bon (€400bn) worth of debt in 2019. Last year, Italy recorded a government debt equivalent to more than 130 percent of the country’s GDP but has struggled to keep repayments down due to interest lowering the effect of the European Central Bank’s asset purchase programme, which is due to end in December. Christopher Wood, analyst of the financial letter ‘Greed and Fear’, suggested to Corriere della Sera that the US is acting as an anchor buyer of Italian bonds because Mr Trump is looking to sow deep divisions within the European Union. He said: "The anti-euro and anti-immigration populists in Europe now have in the White House a supporter who openly encourages them to pursue their programmes. “Trump could not have made more clear that he supports the cause of those in Italy who want to leave the euro. Italy financial crisis: Donald Trump reportedly offered to buy Italian sovereign bonds “This is not unimportant because a potential future decision by the country to exit the euro may seem less risky politically and financially if it has the support of the American President.” Italian bonds have been under increasing pressure over the past few months amid concerns over the new coalition government’s financial promises and its cooler stance towards the eurozone. The yield on Italy’s benchmark 10-year government bonds dropped two basis points to 3.08 percent in early trading on Friday. The benchmark had been one of the best performing in the eurozone in the first half of this week, with yields falling from 3.14 percent on Monday to lows of 2.937 percent on Wednesday. Donald Trump was reported to have made the offer during a meeting with Giuseppe Conte<doc-sep>President Trump Donald TrumpTrump lashes out after grand jury seated for New York criminal probe Schumer tees up vote on Jan. 6 commission bill Senators struggle to save Jan. 6 commission MORE offered to assist Italy's prime minister in funding the country's public debt by having the U.S. buy Italian sovereign bonds, according to a news report. An Italian newspaper reports that Trump made the offer during a meeting with Italian Prime Minister Giuseppe Conte in Washington earlier this year, though it was unclear exactly how the U.S. would purchase the bonds, according to CNBC. ADVERTISEMENT Financial analyst Christopher Wood told the Italian newspaper Corriere della Sera that Trump's goal in offering to finance Italy's debt, which CNBC reports investors are fleeing as it surpasses 130 percent of the country's GDP, is to foment divisions between Italy and the European Union. "Trump could not have made it more clear that he supports the cause of those in Italy who want to leave the euro," Wood said. Officials in Rome are desperate to find new investors, the Italian newspaper reported, suggesting that a possible deal could be on the horizon. Conte and Trump met at the White House in July and held a joint press conference. A month earlier, Conte had backed Trump's call to readmit Russia to the G-7. Trump and Conte have a warm relationship, a rarity for Trump among European leaders. The U.S. and EU have clashed in recent months on issues such as immigration and trade. Conte's government, which formed at the beginning of June, is seen as a right-wing populist movement in the country.<doc-sep>
Italy's Prime Minister Giuseppe Conte (L) shakes hands with the President of the United States Donald Trump on the first day of the G7 Summit. President Donald Trump reportedly offered to buy Italian sovereign bonds during a White House meeting last month with Prime Minister Giuseppe Conte. According to Italian newspaper Corriere della Sera, Trump offered to help finance Italy's 2019 public borrowing, when the Rome treasury is scheduled to issue about 400 billion euros ($462 billion) worth of debt. Italy recorded a government debt equivalent to more than 130 percent of the country's gross domestic product (GDP) in 2017, but has been able to keep repayments down thanks to the interest lowering effect of the European Central Bank's asset purchase program. But that program is set to end in December and political instability in Italy, along with the country's wavering commitment to the European Union, have seen Italian borrowing costs spike to levels not seen since 2014. The news report added that while Rome is increasingly desperate to replace the private investors who are fleeing Italian bonds, it is unclear how the U.S. could step in to guarantee the debt. And on the question of why the U.S. administration would act as an anchor buyer of Italian bonds, the paper quoted Christopher Wood, analyst of the financial letter "Greed and Fear," who suggested Trump may be keen to sow division within the EU. "Trump could not have made it more clear that he supports the cause of those in Italy who want to leave the euro," Wood said. For more on Trump's reported offer to buy Italian public debt, click here. At the time of publication, White House press staff had not responded to a CNBC request for comment.