5-Star, League want $296 bil. in Italian debt to be forgiven

Movement leader Luigi Di Maio speaks following a talk with Italian President Sergio Mattarella at the

Movement leader Luigi Di Maio speaks following a talk with Italian President Sergio Mattarella at the

On Wednesday morning Salvini said that negotiations were nearing conclusion, while Di Maio confirmed the two parties could wrap up the "contract of government" within the day.

It revealed that the 5 Star Movement and the League were still discussing this week proposals that included a demand that the European Central Bank cancel €250 billion ($297 billion) of Italian government debt.

The two parties have spent the last six days drawing up a so-called "contract" meant to be the basis for a coalition government between the two groups following an inconclusive March 4 election.

Not so long ago a document as radical as the draft Italian coalition program that surfaced on Tuesday night would have sent the markets into meltdown. Both parties have made clear they intend to fight the EU's Stability Pact.

More news: Bucks to Hire Mike Budenholzer as Head Coach

Italy's 10-year bond yield jumped almost 19 basis points to 2.13 percent, its highest level since early March and the biggest one-day rise since March 2017, while Italian bluechip stocks fell 2.5 percent.

What do the two parties want?

The League has promised to introduce a flat tax rate of 15%, which would tax revenues by some 80 billion euros (RM376 billion) per year, while 5-Star has pledged new welfare payments for the poor costed at around 17 billion euros (RM80 billion). Italy's debt mountain totals more than 130 percent of national output is the highest in the Eurozone after Greece's.

With just a year of its term remaining the Commission "can't really do much other than put Italy's finances under greater scrutiny, and markets don't care about that", he said.

More news: Paddy Power Betfair in talks to buy Fanduel

Di Maio told reporters in parliament "the recipe to lower public debt is by investments and expansionary policies".

Only five percent of Italian government bonds are held by non-EU residents, making the chances of a massive flight of capital unlikely, ADM Investor Services market strategist Marc Ostwald said.

The Northern League firmly opposes current European Union budget rules.

For instance, the EU's Migration and Home Affairs Commissioner Dimitris Avramopoulos said he hopes Italy's policy on asylum seekers does not change under the new government. It might also dismay Italian President Sergio Mattarella, who has repeatedly stressed the importance of maintaining a strong, pro-European stance.

More news: The Apple drops for Samsung

Both M5S and League have a deep history of Euroscepticism and while 5-Star has moderated its position considerably in the past year, rowing back on a previous plan to hold a referendum on Italy's membership of the currency bloc, the League still wants to leave the Eurozone as soon as is politically feasible. Their plans could also challenge European Union rules. The policy program will probably be published Thursday, 5-Star said.

Recommended News

  • Taraji P. Henson Reveals She Got Engaged On Mother's Day

    Taraji P. Henson Reveals She Got Engaged On Mother's Day

    But Taraji is pleased she let the proposal play out as it did, and added she's "very very happy". Empire returns for its fifth season this fall on Fox .
    Laurel or Yanny? What science has to say

    Laurel or Yanny? What science has to say

    Although the words may sound completely different to you, the acoustics of the word are quite the same. If you haven't heard about the "Yanny or Laurel" debate , you might be living under a rock.
    Nigeria's Parliament Passes Record 9.12T Naira 2018 Budget

    Nigeria's Parliament Passes Record 9.12T Naira 2018 Budget

    We all recall in the Health Act, 2014 where it was stated that at least 1% CAN will be allocated to Primary Health Care. The Nigerian Senate, on Wednesday, passed the 2018 Appropriation Bill, six months after its presentation.
  • Your Local Election HQ: Scott Wagner Declared Winner of GOP Gubernatorial Race

    Your Local Election HQ: Scott Wagner Declared Winner of GOP Gubernatorial Race

    Wagner only received 36% of the votes in our county. "It's not an easy thing to go out and run a statewide campaign", he added. John Fetterman won the five-way Democratic Party primary race for lieutenant governor Tuesday, beating incumbent Mike Stack.
    Petrol, diesel, Kerosene dearer by Rs 2 per litre

    Petrol, diesel, Kerosene dearer by Rs 2 per litre

    Before Monday, petrol and diesel prices were last revised on April 24 when they were hiked by 13 paise each. At HPCL pumps, the price of a litre of petrol is now Rs. 79.27, while for diesel it is Rs. 71.93.
    Your Body Clock is Associated With Mood Disorders

    Your Body Clock is Associated With Mood Disorders

    If you're scrolling on your phone past 10pm at night, you might be heightening your risk of mood disorders. Daniel Smith , professor of psychiatry at the University of Glasgow and a leading author on the study .
  • Rousey eager for WWE title, baby 'someday soon'

    Rousey eager for WWE title, baby 'someday soon'

    But now that she's been married to Travis Browne for nearly a year, it's clear procreation's on the brain. Ronda Rousey will make her British debut for WWE in an event at the O2 Arena in London on August 29.
    Charges against Missouri Governor dropped… for now

    Charges against Missouri Governor dropped… for now

    The House leaders say the dropped case now means Greitens can testify before the House committee, which he so far has not done. The woman, who has not been identified, was captured on a secretly recorded tape telling her then-husband that Mr.
    Trump financial disclosure could reveal porn star payoff

    Trump financial disclosure could reveal porn star payoff

    The US Office of Government Ethics released the 92-page document, which relates to the calendar year 2017. The disclosure did not specify what the reimbursement was for, and gave just a range: $101,000-$250,000.
  • Mikel Arteta favourite to become Arsenal manager

    Mikel Arteta favourite to become Arsenal manager

    The former midfielder is now the head coach at New York City FC and he has been tipped for a big future in management. Since July 2016, a 36-year-old Artera has been working as a coach at Manchester City under Pep Guardiola .
    TI Arrested For Disorderly Conduct, Public Drunkenness Outside His Gated Community

    TI Arrested For Disorderly Conduct, Public Drunkenness Outside His Gated Community

    However, the website said the rapper was eventually allowed into his gated community after an initial argument with the guard. Rapper T.I. was arrested earlier Wednesday morning in Stock Bridge, Georgia, outside of his residence's gated community.
    Star Wars Lando Movie Coming 'In the Future'

    Star Wars Lando Movie Coming 'In the Future'

    Solo doesn't hit theaters for another week, but the next Star Wars spin-off may have already been revealed. ET: It turns out Donald Glover's Lando Calrissian isn't getting his own film after all.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.