Brussels calls on Italy to stay committed to the 'European path'

ForexLive Americas FX news wrap: USD/JPY climb continues

ForexLive Americas FX news wrap: USD/JPY climb continues

Should the parties get into power they will demand a renegotiation of Italy's European Union budget contributions, the dismantling of a 2011 pension reform that raised the retirement age, and an end to sanctions against Russian Federation.

Analysts are concerned that big spending plans by 5-Star and the far-right League, who are negotiating to form a coalition, will push up Italy's debt, which at more than 130 percent of national output is already the highest in the euro zone after Greece's.

Avramopoulos praised Italy for the management of the Mediterranean migration crisis, crediting Italy with saving migrant lives at sea.

It could lead to a spate of Eurosceptic, populist parties making promises to clear European Union debt. In particular, it had been decided "not to call into question the single currency", they said. "I wasn't born just to make do". Both parties have made clear they intend to fight the EU's Stability Pact.

The partnership between the League's Matteo Salvini and Mr. Di Maio would represent a blow to mainstream European political parties across the continent.

In upbeat comments that contained few of the cautionary notes he had used in recent days, Salvini said the 5-Star and League coalition would set a precise timeline for its reforms in issues including taxation, pensions and education. Salvini also hit back at the Financial Times for comparing the prospect of a League-M5S government to the return to the barbarians to Rome.

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