• News
  • Money

Italy 'very important' to European Union, says Juncker

Italy 'very important' to European Union, says Juncker

The 5-Star Movement and the League have been negotiating a power-sharing deal since last Wednesday, when Salvini's right-wing coalition partner, former Prime Minister Silvio Berlusconi, gave the green light for the pair to form a government without his Forza Italia party.

Luigi Di Maio, the leader of M5S, emerged from a meeting with the League's counterpart Matteo Salvini saying a pact could be sealed by Thursday evening.

The policies would cost many billions of euros and have spooked investors in Italian debt, shares and the euro.

Fresh elections in the autumn would probably be nearly inevitable if this latest attempt to form a government fails.

"European economic governance. must be rethought. including the single currency, in the name of a return to the pre-Maastricht spirit", says the latest version of the 40-page, 29-point draft document published on La Repubblica newspaper's online edition. Italy, along with Greece, has taken the brunt of the Mediterranean migrant crisis and has been credited with saving Europe's honour for its efforts to save lives at sea. There was still no word on the thorny issue of who would be 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and which calls for the European Central Bank to write off 250 billion euros in the nation's public debt, is out of date, stressing that the single currency is not in question.

Italy's 10-year bond yield jumped 14 basis points to 2.08 percent, IT10YT=RR its highest level since early March. 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. Di Maio told reporters in parliament "the recipe to lower public debt is by investments and expansionary policies".

European Union leaders meeting in Sofia on Wednesday are likely to be concerned about the rhetoric coming from the parties that could form a new Italian government as early as next week. "We don't want to be in a government that is similar to the ones we had over the past five years", said the League's Gian Marco Centinaio, one of Salvini's closest advisors.

With hard decisions to be taken, the League revived some of its campaign rhetoric, taking aim at European Union budget restraints which impose de facto limits on how much a government can spend to kick-start its economy. "But I won't comment in advance on the possible outcome of talks taking place on a coalition government", he said. However, the League still wants to leave the euro zone as soon as politically feasible. President Sergio Mattarella, who has repeatedly stressed the importance of maintaining a strong, pro-European stance, may also be dismayed. The two eurosceptic parties intend to water down recent labour-market reforms and have raised the prospect of a "parallel currency", an eventual replacement for the euro. Each party plans to consult its supporters over the weekend to see if they back the nascent government pact.

5-Star has adopted a softer line on migration and Salvini said on Monday this was another area of discord between the two sides.

Leave Your Comment

Leave Your Comment


Latest News

Breaking News



Recommended

Wenger: Arteta has qualities for Arsenal job

Arteta made over 100 appearances for Arsenal over the course of five seasons, joining in 2011 and becoming club captain in 2014. Having spent 22 years at the Gunners helm, the Frenchman has suffered plenty of recruitment near misses in his time.

Eagles Schedule White House Visit, Though Not All Are Coming

Jenkins said. "If you want to meet to talk about events in my community, changing the country, I'm all for that. Over the last two years I have been meeting with legislators, both republican and democrat.

Volcano Shoots Ash Cloud Over Hawaii's Big Island

Scientists with the USGS have not yet figured out the cause of explosions like the one that happened Thursday morning. Due to elevated sulfur dioxide levels in the area, local schools are also closed, Hawaii County Civil Defense said.

Where things stand in Reuben Foster's domestic violence case

She describes her motivations as a "money scheme" and out of anger over the breakup, and testified that she threatened him. She said she lied to investigators, hospital workers and even her mother after the incident February 11.

Ronda Rousey Has Baby Fever, Says Nia Jax's Challenge Will Backfire

Ronda Rousey tagged with Natalya and Ember Moon to take on Mickie James , Ruby Riott , and Liv Morgan in a six-woman tag match. There have been four Raw shows since WrestleMania and there hasn't been any sign that the WWE was going in that direction.

Will Cong-JD(S) MLAs stay at Kerala resort owned by Left MLA?

He requested that the current government here should be dissolved and the single largest party, RJD, be invited to form the government.

Alabama announces home-and-home football series with Texas

While those games can be fun, many college football fans clamor for the return of more interesting home-and-home series. The 2019 season will be no different, as Alabama is set to travel to Orlando to play Louisville on Saturday, Sept. 1.

Another deadly attack in indonesia

Australian news website news.com.au reports that more than one reporter, attending an unrelated news conference, were hurt. The bombing followed separate attacks on three churches, also carried out by one family, in the same city.

Sherpa Kami Rita Sets Record with 22nd Successful Climb of Mount Everest

On Wednesday, he created a new record by climbing Everest for the record 22nd time, The Kathmandu Post reports. More than 340 foreign climbers along with their local guides are attempting to climb Everest this month.

Lachlan Murdoch set to become chairman and CEO of 'New Fox'

He's expected to move on after the deal with Disney is completed, pursuing his interests in areas such as technology investments. The executive will assume both the CEO and chairman jobs at the company, which is being referred to as New Fox.