A "bomb" to Italy's political establishment - Italy's 5-Star/League agreeing on the joint policy programme
|- There was little reaction in the FX space, but today marks the date that we can finally see some closure after 10 weeks of stalemate in Italian politics.
- The two anti-system parties have completed the joint policy programme for a coalition government and have passed the document to leaders for their approval.
The far-right League and the 5-Star Movement have been discussing a common policy agenda for a week after a March 4 election ended in a hung parliament, but just today, the two anti-system parties have completed the joint policy programme for a coalition government and have passed the document to leaders for their approval. If the agreement is passed, 5-Stars Luigi Di Maio said the details will be distributed over the weekend.
Keep an eye on Italy MIB
This will now be something to watch as populism is back on the agenda for markets where the coalition has radical ideas to free up billions of euros for tax cuts and welfare. Also, a draft coalition program was leaked yesterday where the coalition planned to ask the European Central Bank to forgive 250 billion euros ($296 billion) of Italian debt purchased under the euro zone central bank’s quantitative easing (QE) program - sending Italy's benchmarks down by 2.5 percent and Italy's borrowing costs higher. Italy’s 10-year bond yield climbed nearly 19 basis points to 2.13 percent and that was its highest level since early March and the biggest one-day rise since March 2017.
- Italy MIB -2.3% (closing Wednesday)
"I see in a certain establishment such a fear of change," he said. "If we get there it will be a bomb – but a bomb in the positive sense. With courage we will succeed in returning citizens their rights and returning Italy to her rightful place on the European stage."
- Di Maio
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