Published: Wed, May 16, 2018
People | By Leon Thompson

Italy's rival populist leaders to report on coalition talks

Italy's rival populist leaders to report on coalition talks

The shock manifesto, entitled Government for Change, reveals plans for Italy to leave the single currency, calls for sanctions against Russian Federation to be scrapped and reveals plans to ask the European Central Bank to write off the country's £250bn debt.

European Commission President Jean-Claude Juncker and German Foreign Minister Heiko Maas agreed on Friday to use the already available options to circumvent the required EU member states' unanimity when it comes to addressing foreign challenges including the Syrian war.

Both the 5 Star Movement and League have previously floated ideas of a Brexit-style referendum on Italy's European Union membership, but dialed back their euroscepticism ahead of the country's March election.

Italian newspaper il Giornale - otherwise highly supportive of Salvini's populist Lega party - declared the delay the work of amateurs, noting that new discussions could add days more onto Italy being without a functioning government.

Even so, traders were anxious about by the developments. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. The higher yield signals investors are becoming more nervous about the country's finances and in turn demanding a higher premium to buy the bonds. EZ refers to the eurozone.

Borghi is a member of the group working on a common programme as the two anti-system parties seek to form a government more than 10 weeks after a national election ended with a hung parliament.

Dubai World Cup winner Thunder Snow to be aimed at Breeders Cup Classic
Others worth a mention in the current list are West Coast 9/1, Hofburg 14/1 and the hugely popular Accelerate, also trading 14/1. Mubtaahij made up the places but the victor was never in trouble, delighting followers who had him backed at a stunning 8/1.

The borrowing costs of Italy jumped on Wednesday, while its stocks fell due a draft program for a potential coalition government comprising the anti-establishment 5-Star Movement and the far-right League that includes some controversial measures. Mattarella urged the parties to instead back a caretaker government that could lead the country until the end of the year and approve the budget.

The leaders spoke to Italian President Sergio Mattarella Sunday and promised a decision on the next Italian Prime Minister for his approval - certain to be neither party leader but a third, less contentious choice - but as of Tuesday morning, the two parties seem to have drifted further from an agreement.

The 5-Star Movement, which bills itself as an alternative to traditional politics, makes its positions and candidates subject to review by supporters in online votes.

"It seems euro leaders were too quick to congratulate themselves on a job well done when defeating populists previous year", said Craig Erlam, senior market analyst at Oanda, in a note.

"We don't want to be in a government that takes orders from Europe".

Like this: