Wednesday, 17 October, 2018

Italian party asks for more time to form govt.

Brussels calls on Italy to stay committed to the 'European path' Anti-EU “barbarian” Salvini announces Italian govt deal close
Steven Clarke | 17 May, 2018, 17:09

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and which calls for the European Central Bank to write off 250 billion euros in the nation's public debt, is out of date, stressing that the single currency is not in question.

The two pre-election adversaries began negotiating a coalition deal last week, more than two months after an inconclusive March 4 election produced a hung parliament.

Japan's economy contracted more than expected at the start of this year, suggesting growth has peaked after the best run of expansion in decades, unwelcome news for a government struggling to get traction for its reflationary policies.

To help reduce Italy's public debt, which at more than 130% of national output is the highest in the euro zone after Greece's, the joint document calls for the ECB to forgive €250 billion of Italian benchmark BTP bonds bought under the bank's so-called "quantitative easing" programme.

"First must come the things that need doing, and only afterwards (we need worry about) absurd rules written many years ago when the world was totally different", he said.

Mr. Di Maio said he understood that an alliance of the 5-Star Movement and the League may "scare a part of the European establishment". Among Mr. Di Maio's campaign planks was a pledge to guarantee a minimum income to the unemployed.

The opposition Democrats have warned that the League's vow to drastically lower taxes to a flat 15-percent rate and the 5-Stars' promise of subsidies to the poor will drastically drive up government borrowing.

"It's very possible that the parties will have to moderate their plans on a lot of these controversial areas once they try to govern", said Flavio Chiapponi, a political scientist at the University of Pavia and author of a book about the 5-Star Movement.

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Both he and Salvini said that the final version of the accord and composition of the government team will be put to the parties' members for approval. "We can not go to Brussels with positions that are far apart", he said. "Italy is of the highest importance for the European Union". This would lower Italy's public debt, now at 130% of national output.

The document - entitled Contract for a Government of Change - paves the way for a general confrontation with Brussels, as it envisages "immediately ending sanctions against Russia", which have been in place since 2014 following Moscow's invasion of neighbouring Ukraine.

The League has promised a tougher line on migrants arriving from Africa and denounced Avramopoulos's comments.

M5S leader Luigi Di Maio and his Lega counterpart, Matteo Salvini, both claim that the two parties are no longer pushing for an Italian exit from the Eurozone.

Di Maio backed his potential coalition partner, saying the nascent government was "receiving constant attacks, even today by some eurocrats who weren't elected by anyone".

Immigration Commissioner said he hoped that Italy would not "change the line on migration policy".

Berlusconi has refused to govern with the 5-Stars, who he regards as "more unsafe than communists".

"A minister from the League who would work on security and border control would be a guarantor that whoever comes to Italy has the right to do so", he said.

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