On October 28 www.carsuk.net published an article that describes how Italy’s government is replacing its fleet of Lancia Thesis and Audi A6s with a more stylish Italian car – the Maserati Quattroporte.
Nineteen Maserati cars were ordered by the Italian Ministry.
According to a November 1st article in the Sydney Morning Herald, Italy’s new car upgrades cost the Italian government 2.5 million. The new purchase comes at a critical time when the Italian government is forced having to cut billions in public spending.
Italy’s Defense Minister, Ingazio La Russa, claimed that the Maseratis were purchased using funds from the 2008-2009 budget.
Italy’s economy is currently in a fragile state while their borrowing costs are moving much higher. Italy’s 10 yr bond yield exceeded 6% on October 28th.
As of November 4th, Italy’s bond yield reached 6.4%. Italy’s current 10 yr. bond yield is at 6.37% as quoted by Bloomberg.
Italy’s high bond yields are sending the country down the same road as Greece, Ireland, and Portugal shortly before they sought a rescue.
Last week Prime Minister Silvio Berlusconi faced two defections within his own political party. He will likely face another confidence vote in Italy’s parliament this week.