BALI, Indonesia – President of the European Central Bank, Mario Draghi, warns in front of his official budget bill before Rome: Do not expect the ECB to save the day.
He went on to say that the situation had been "dramatized" and that was "Not the first time that there are deviations from established rules in Europe."
But investors fear the Italian government might resort to this precedent and a venture that a violation of EU budgetary rules will not result in serious penalties and that if the situation for Italian financial markets worsens, they can rely on the ECB.  Draghi, in turn, told CNBC that this was not possible 9659003] Italy is expected to submit its budget to the European Commission by October 15, 2019.
Referring to the technical rules of the ECB's program to buy Outright Monetary Transaction government bonds, he explained that "strict conditions are required to an ESM (European Stability Mechanism)" program and reiterated his conviction that a solution will be achieved before it arrives at this time.
Draghi's confidence in Italy's budget was in contrast to his more cautious tone about the large global risk factor. The IMF's annual growth forecast this week states: trading tensions.
Draghi declined to say whether he was more optimistic about the prospects for a resolution on this front.
"It's a continuing problem," he said. "For example, we had positive news about signing a trade agreement with the US, Canada and Mexico."
The central banker added that one important area to watch is sustained trade between the US and China. While he said it was too early to make any predictions about how the dispute would end, he acknowledged that "the level of concern has certainly increased in the last six months."
According to Draghi, the biggest risk was At the annual meetings, there was an environment of rising interest rates and a sharp revaluation of assets.
His comments preclude a week in which world markets were shaken by fears about the US Federal Reserve and the prospect of a more aggressive tightening
Draghi He stressed, however, that the perceived threat to Europe had not yet materialized.
"So far, financing conditions are accommodative enough that we think the system is quite resilient, and when we talked about these risks, we talk about possible situations that may happen in the future, but not now," he said. "With that said, these risks now tend to drive down global growth, while say, say, six months ago, that they are fairly balanced."