Italian bonds and stocks grew up together with euro after new Minister of Finance assured that Italy is not going to abandon common currency, Bloomberg reports.

Country’s shares are ready to show the largest growth from February as signs that Italy might leave euro zone or even consider such an option faded away.

Investor’s concern grew after Italy’s populists parties formed a coalition. This union promised to increase spending and introduce a flat tax for families and corporations that will cost over 100 billion in first year.

Extra premium that investors demand for 10-year bonds of the country over German bonds declined by 31 basis points to 237 points. Last month it reached 323 basis points, the highest in five years. Yield of 2-year bonds dropped by 50 basis points to 1,15%, while yield of 10-year bonds declined by 29 basis points to 2,84%.

Italian stocks rose. Index FTSE MIB grew by 2,4%. It fell by 2,3% from the beginning of the year until last Friday.

It is hard to predict the further behavior in financial area of the country, still new financial plan is still out there.