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Times of Oman
2 days ago
- Politics
- Times of Oman
Miguel Uribe, who was to run for Colombian Presidential race, shot thrice
Bogota: Colombian Senator Miguel Uribe, in the running to join next year's presidential race, was shot at an event in Bogota, according to national police, CNN reported. The 39-year-old, from the conservative Centro Democratico - or Democratic Center - one of the biggest opposition parties in the South American nation, had expressed his intention to run in next year's election, as per CNN. "Armed individuals shot him in the back while he was participating in a campaign event at around 5:00 pm," the party said in a statement. Bogota Mayor Carlos Galan said Uribe was receiving emergency care after being attacked in the capital's Fontibon district, and the suspected attacker had been arrested. The attack drew condemnation from the Colombian government and Centro Democratico, as well as former presidents and other regional leaders. Colombian President Gustavo Petro expressed his solidarity with the senator's family in a post on X, saying: "I don't know how to ease your pain. It is the pain of a mother lost, and of a wounded homeland." The Colombian foreign ministry called the attack "a direct affront to democracy, respect for differences, and the free exercise of politics in our country." It called on the authorities to "to fully clarify this serious incident." Centro Democratico called the shooting "an unacceptable act of violence." "We strongly reject this attack, which not only endangers the life of a political leader but also threatens democracy and freedom in Colombia," it said in a statement, as per CNN. At least four former presidents - Ernesto Samper, Alvaro Uribe, Juan Manuel Santos and Ivan Duque - issued condemnations. Ecuadorian President Daniel Noboa sent his prayers to Uribe's family, adding that "we condemn all forms of violence and intolerance." The UN Human Rights office in Bogota urged the authorities to investigate and bring those responsible to justice.
Reuters
21-05-2025
- Business
- Reuters
Italians and 'lo spread', an obsession whose time has passed
ROME, May 21 (Reuters) - A previously unused English word crept into the Italian language during the euro zone debt crisis of 2011 as the country's borrowing costs soared to unsustainable levels. Ever since then "lo spread", or the gap between the yield on Italian benchmark bonds and their German equivalents, has been brandished by politicians and the media alike as a symbol of national pride or shame, much like a sporting victory or defeat. After the BTP-Bund gap took a rare dip below one percentage point, or 100 basis points (bps), Prime Minister Giorgia Meloni told parliament last week "this means Italy's government bonds are considered safer than German ones." Her economy minister, aware the narrower spread in fact meant merely that Italian bonds were considered comparatively less unsafe than before, smiled and shook his head beside her. Fourteen years ago the attention on the spread was justified. Germany's economy was the European powerhouse and the surge in Italian yields meant Rome had to pay huge sums to service its debt and risked losing market access altogether. Times have changed, however, and many economists say that with German benchmark bond yields rising due to a planned spending splurge on defence and infrastructure, Italians' fixation with the BTP-Bund spread now makes far less sense. "What matters for us is the level of interest rates, not the spread with Germany," said economist Tito Boeri, a former head of Italy's state pensions agency. "If German yields rise that doesn't help Italy's public accounts." Rome spends some 90 billion euros ($101 billion) per year, or 4% of gross domestic product to service its 3 trillion euro public debt. With the yield on 10-year BTPs still above 3.5%, that implies a heavy burden on state coffers regardless of the narrow spread with Germany. At around 135% of GDP, Italy's debt is proportionally the second-largest in the euro zone after Greece's, and it is forecast by the government to rise through 2026. Analysts say Meloni's unambitious but relatively prudent economic policies have reassured markets, but the recent narrowing of the spread is mainly down to developments in Germany and the United States. Economist Lorenzo Bini Smaghi, a former European Central Bank board member, said investors' waning appetite for U.S. Treasuries had benefited European bonds and particularly high-yielding paper such as Italy's. "If I consider Europe as a safer bet, partly because I expect the dollar to fall, I'm going to invest in European bonds, especially those that offer higher returns," he said. Italian bond yields are still the highest of any euro zone country, reflecting the risk-premium demanded by investors, and Boeri warned that market volatility linked to U.S. economic policy meant Rome had no reason for complacency. Italy's 10-year yield of around 3.6% compares with 3.2% on equivalent Spanish bonds and 3.4% on Greek ones. "We need to be very, very careful because what is happening on international government bond markets shows us the slightest mistake (in economic policy) can be costly," he said. Italy could come unstuck even without a mistake. Spread fluctuations very often reflect "risk-on" or "risk-off" market sentiment driven by international events, not Italian ones. The BTP-Bund gap widened briefly but sharply, for example, after U.S. President Donald Trump announced swingeing trade tariffs on April 2, only to suspend many of them a week later. "The spread widens when we see a flight to safety because Italy is not considered 'safety'," said Roberto Perotti, economics professor at Milan's Bocconi university. A glance at the past shows the BTP-Bund spread has dipped below 100 bps under several Italian governments, sometimes surging shortly afterwards due to factors outside their control. For much of 2009 the spread hovered between 80 and 100 bps under Prime Minister Silvio Berlusconi, before widening out to a peak of more than 570 bps in 2011 during the euro zone debt crisis, despite Rome following a broadly stable fiscal policy. In 2021, under former ECB President Mario Draghi, it again narrowed to less than 100 bps only to widen to 250 the following year amid surging global inflation after the COVID-19 pandemic. Perotti said it was understandable that Meloni should point to the narrow spread as a political success. But with Germany no longer seen as a pillar of fiscal restraint and stability, its value as an indicator had diminished. "At the moment it doesn't have much meaning," he said. ($1 = 0.8890 euros)
