Italian markets spooked by populist proposal

5-Star leader Luigi Di Maio

Italy's 5-Star Movement and the far-right League have completed a joint policy program meant to be the basis for a coalition, with their respective leaders due to have the final word, party officials said on Wednesday.

On Thursday evening, League leader Matteo Salvini said it would be handed to Mattarella on Monday, by which time he and Di Maio should also have their candidate for prime minister.

It was not clear when these and other measures would be adopted, and there was still no word on the thorny issue of who would be prime minister. League chief Matteo Salvini and Di Maio have not yet agree who will be the premier of the new government.

A previous draft dated May 14 and leaked to the press said Italy should request a 250-billion-euro debt cut from the European Central Bank, which prompted the Milan-based stock exchange to plunge by 2.32 percent and pushed the spread to 151 basis points (from 130 points Tuesday) at Wednesday's close.

The 39-page draft, obtained by Huffington Post Italia, reflected the difficulties the two pre-election rivals face in finding the resources needed to pay for promises they made to their voters during the campaign. The League has pledged to introduce a flat tax rate of 15 per cent, which would lower tax revenues by some 80 billion euros ($95 billion) per year, according to some estimates, while 5-Star has pledged new welfare payments for the poor costed at 17 billion euros.

The bloc's budget rules require it to cut the debt pile aggressively under the "fiscal compact", which both parties want scrapped. Italy's main share index closed up 0.3% and the gap between the yields on Italy's benchmark bonds and safer German bonds retreated after briefly widening on Thursday to their widest since early January. European stock markets climbed and Britain's FTSE 100 notched a record closing high.

More news: US Surgeon General helps passenger with medical emergency on flight to Jackson

"The near-term picture remains positive for the dollar with Treasury yields showing few signs of topping, a move that makes the buck a more enticing bet to income-seekers", said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. He declined to comment on the outcome of the coalition talks.

If approved, the program will then be presented to Italian President Sergio Mattarella.

The League-Five Star draft document also states their "intention to oppose" worldwide trade treaties such as the EU-Canada Comprehensive Economic and Trade Agreement (CETA), the Transatlantic Trade and Investment Partnership (TTIP), and ongoing negotiations to grant China market economy status (MES). 5-Star has moderated its position over the previous year, but the League still wants to leave the eurozone as soon as politically feasible.

While few people see that as either a realistic proposal or one that would remain in the coalition's agenda, the tone of the new government's stance toward euro zone rules was seen as confrontational and spooked some investors.

Another proposal causing alarm in financial markets is the creation of "economic and judicial procedures that allow member states to leave monetary union".

Related News:

  • Distant galaxy hints at universe's earliest stars

    Distant galaxy hints at universe's earliest stars

    However, numerous heavier elements we take for granted today (such as carbon and oxygen) did not exist before the first stars. The presence of oxygen is a clear sign that there must have been even earlier generations of stars in this galaxy .
    Inmates revolt at Venezuela detention center, Utah man pleads for help

    Inmates revolt at Venezuela detention center, Utah man pleads for help

    Chief Prosecutor Tarek William Saab sent a commission to the El Helicoide prison to speak with a representative of the inmates. Shortly afterward, the couple was arrested at her household's condominium after police alleged he was stockpiling weapons.
    MSU To Pay $500 Million to Victims of Dr. Larry Nassar

    MSU To Pay $500 Million to Victims of Dr. Larry Nassar

    Nassar received two prison sentences earlier this year in MI - one for up to 125 years and another for up to 175 years. It resolves claims against individuals that were employed by the faculty and implicated in the wide-ranging scandal.
  • Trump threatens Kim Jong-un with 'decimation'

    Trump threatens Kim Jong-un with 'decimation'

    The moves give the clearest indication yet of North Korea's mindset heading into the summit, scheduled for June 12 in Singapore . Now Kim's aggressive response to Bolton's inept remark would seem to indicate that the summit no longer has any point.
    Meghan's mum arrives in United Kingdom  for royal wedding amid 'Markle debacle'

    Meghan's mum arrives in United Kingdom for royal wedding amid 'Markle debacle'

    Thomas Markle , 73, a former lighting director for TV soaps and sitcoms, had been expected to attend the nuptials Saturday at St. He allegedly told TMZ that daughter Meghan had been in touch , to tell him she loved him and was concerned about his health.
    Vegas Golden Knights are Golden in Game 3 over Winnipeg Jets

    Vegas Golden Knights are Golden in Game 3 over Winnipeg Jets

    Those tallies have come on just 17 shots, for a sky-high shooting percentage of 65. "A better start." One with less mistakes. The Golden Knights' defence kept them so bottled up that they were held to just three shots on net in the first period.
  • First Pic! Alec & Hilaria Baldwin Welcome Baby #4

    First Pic! Alec & Hilaria Baldwin Welcome Baby #4

    Captioning the snap, she wrote: "He's here!" A little while later the gorgeous brunette shared a bump selfie , from the hospital. Dressed in a comfy black tracksuit and slides, the heavily pregnant Hilaria appeared calm and ready to meet her baby boy.
    EU Must Defend Firms against US Iran Sanctions: Macron

    EU Must Defend Firms against US Iran Sanctions: Macron

    German Chancellor Angela Merkel has acknowledged that the Iran nuclear deal "certainly has weaknesses" but says it should be preserved.
    Everton sack manager after six months in charge

    Everton sack manager after six months in charge

    This could have been the day Sam Allardyce announced his England World Cup squad, instead he's been sacked by Everton . Allardyce was in charge for 26 games in all competitions, winning 10, drawing seven and losing nine.
  • NBCUniversal May Drop WWE Smackdown Live From Its TV Schedule

    NBCUniversal May Drop WWE Smackdown Live From Its TV Schedule

    Annie Kruger - a spokeswoman for WWE - told Sporting News in March that the company plans to announce their new U.S. For this latest cycle, early reports indicate that WWE's outlook could be very, very different.
    MI spoils KXIP Party, defeats them by three wickets

    MI spoils KXIP Party, defeats them by three wickets

    On this wicket when the slower ball was bowled on a good length, it wasn't gripping, so I looked to bowl a dipper and it worked". In the 19th over , he took out the risky Rahul with a slower delivery and conceded just six runs to finish with 4-0-15-3.
    Petrol, Diesel Prices Continue to Rise After 19-Day Freeze

    Petrol, Diesel Prices Continue to Rise After 19-Day Freeze

    The oil companies set the prices of petrol and diesel depending upon the price of crude oil in the global market. This is the highest petrol price since September 2013 when the petrol price rose to Rs 76.06/litre.

Most liked

Environmental lawyers in push to stop gas pipeline in Finland
According to Altmaier, the European Union must ensure that Ukraine will remain a gas even after the new pipeline will be built. Gazprom's Western partners are energy companies Uniper, Wintershall, Engie, Austria's OMV and Anglo-Dutch group Shell.

FIFA Planning New 24-Team Club World Cup
The proposals were put forward by FIFA President Gianni Infantino with a consortium reportedly backing the tournaments. The competition will take place every four years with the first one penciled in to take place in 2021.

Karnataka effect: 'Single-largest' parties Congress, RJD want Goa, Bihar
Amit Shah has only one formula, horse-trading or sending agencies like CBI and ED behind MLAs of other parties. Karnataka Governor Vajubhai Vala has given the BJP an unusual 15 days to prove its majority.

Battlefield V Is This Year's Battlefield Game
Battlefield 3 took place in 2014 while the fourth installment was set six years directly after the events of the third game. VG247 reported earlier that EA is making some progress in this area, and it's now in the prototype stage.

Ronda Rousey wants a baby 'soon'
She felt comfortable enough to reveal that she was "soon" anticipating conceiving a baby with husband Travis Browne . Some people found it rather interesting how Ronda Rousey's singles match was changed to a six-woman tag .

Grenfell Report Calls For Radical Changes To Building Regulations
He said he was "establishing at pace what further action can be done by the government or by the council to speed up this process".

Stan Lee Sues POW! Entertainment for $1 Billion
This latest lawsuit is just the latest in a string of odd occurrences in Lee's personal and professional life. Entertainment for 1 billion dollars. "I love you all and let's keep up this great relationship".

Karolína Plíšková smashes umpire's chair after second round upset
Afterwards, she briefly congratulated her opponent before withdrawing her outstretched hand to the umpire and smashing the chair. Her twin sister, the 71st ranked Kristyna also became a part of the controversy after she bashed the umpire and WTA on Twitter .

Bills announce plan to retire Thurman Thomas' number
Thomas received Heisman votes in 1985 and 1987; the honor went to Auburn's Bo Jackson and Notre Dame's Tim Brown, respectively. When it comes to retiring numbers in the National Football League, every franchise handles it differently.

Emilia Clarke paid the same as male stars on 'Game of Thrones'
During the interaction, Clarke slammed the journalists for their usage of the phrase "strong women" as she said the usage was sexist for a female lead.

Sensex slips 59 points on Cong-JD(S) alliance buzz in Karnataka
Late selling in realty, PSU and infrastructure stocks mainly dragged the market from early highs. Also, the rupee slipped to fresh 16-month low of 67.92 (intra-day) against the dollar.

With World Cup looming, Neymar admits he's scared
It would be a huge blow for everyone. "And on a football level, it would make Madrid much stronger than they already are". The rumours are linking the Brazilian ace to Spanish giants Real Madrid - Barca's arch-rivals.

Senate Passes Bill To Reinstate Net Neutrality
Senator Chuck Schumer also said at the Press Conference; "People who use the internet all the time realize what this is about". This is particularly important for students and families in rural communities that have limited options in internet providers.

The finalists for the NBA's end of season awards have been announced
Davis was also a finalist for Defensive Player of the Year, along with Gobert and Philadelphia center Joel Embiid. The finalists in all categories were determined by voting by a global panel of sportswriters and broadcasters.

PNB shares plunge 14% after Q4 loss, Jefferies suggests bailout
The stock tanked to a fresh 52-week low of Rs 74.30 on BSE and is now at Rs 75.50, down 12.2% from its previous close. In the quarter ended March 2017, the bank had posted a net profit of Rs 262 crore.