European Union accused of 'interfering' in Italian politics

European Union accused of 'interfering' in Italian politics

European Union accused of 'interfering' in Italian politics

The leader of Italy's anti-establishment Five Star Movement (M5S), Luigi Di Maio, said Tuesday that if his party can strike a coalition deal with the far-right League a "bomb" will hit a political system fearful of change.

Speaking to CNBC, the Investment Director at Fidelity International claimed Italy's new government coalition between Lega leader Matteo Salvini and Five Star Movement leader Luigi Di Maio will cause a huge fight with Brussels amid major European Union reform demands.

5-Star's parliamentary party leader Danilo Toninelli told state television Rai: "The only way to get a serious government is to return to the polls".

The two parties have held six days of talks aimed at putting together a coalition government and ending 10 weeks of political stalemate following an inconclusive election on 4 March.

The news drove up Italian bond yields and the cost of insuring Italy's debt against default, before Claudio Borghi, the League's economics chief, told Reuters the request for debt forgiveness was never in an official draft of their program.

According to a current draft agenda viewed by Reuters, the two sides would embark on policies that would breach European Union rules on fiscal discipline: cutting taxes, increasing welfare payments for the poor and scrapping an unpopular pension reform.

The joint document will demand the ECB forgives Italy of €250 billion Italian benchmark BTP bonds bought under the bank's so-called "quantitative easing" programme to help reduce Italy's public debt.

Ford resuming F-150, Super Duty production on Monday
In between, the Ford team received a United Kingdom import license for the die - two hours before the plane touched down. The Meridian Magnesium Products of America plant where the fire broke out also produces parts for other automakers.

YouTube Premium Replacing Red; New YouTube Music Service To Launch Next Week
YouTube announced the expansion of its ad-free subscription service to new countries as well as a new dedicated music platform. The new offering has two tiers - Premium and Music Premium, with the former costing $11.99 and the latter two quid less.

Pope Francis thinking of moment to say farewell
Possible measures include removing bishops, reforming seminaries and paying financial reparation to victims. Cruz was one of the survivors the Pope apologised to at Casa Santa Marta.

The parties still haven't said who they'll nominate as prime minister.

The M5S, meanwhile, said that a draft of the M5S-League government contract, in which Italy's exit from the eurozone is contemplated and which calls for the European Central Bank to write off 250 billion euros in the nation's public debt, is out of date, stressing that the single currency is not in question.

As a direct challenge to European Union fiscal rules, the draft accord also wants the bloc to create fiscal headroom for spending by adjusting the formula for Italy's debt burden, which the rules say must be reduced. It would make "a mockery" of the eurozone's fiscal rules, whereby the government must keep a tight lid on its budget deficit to start tackling its unsustainable debt pile of 130% of GDP.

Yields on 10-year U.S. Treasuries have risen above 3.10 percent this week for the firs time since July 2011, continuing to weigh on stocks as investors considered whether U.S. government bonds might be more attractive than riskier equities.

The emerging M5S-Lega coalition government is also demanding a revision of the Dublin rules that call for migrants to apply for asylum in the country of entry, while that await a decision on a possible resettlement.

Five Star became Italy's largest party after gaining almost 33 percent of the vote, while the League - shorn of the rest of the rightwing coalition that won 37 percent - will be the junior partner with 17 percent. It might also dismay Italian President Sergio Mattarella, who has repeatedly stressed the importance of maintaining a strong, pro-European stance.

Both parties plan to consult supporters over the weekend to see if they back the government pact. The policy programme will probably be published on Thursday, 5-Star said.

Related news