Italy M5S leader says govt deal would be 'bomb' for establishment

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

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

Negotiations to form a new government have heated up in recent days after an inconclusive March 4 general election.

Yields on 10-year US Treasuries hit 3.10 per cent on Wednesday for the first time since July 2011, continuing to weigh on stocks as investors consider whether US government bonds pose a more attractive option to riskier equities.

They also share an anti-establishment sentiment that has taken root in Italy but which has global parallels such as Britain's vote to leave the European Union and the US election of President Donald Trump. "I think investors are recognising we are at the beginning of the beginning of this, so it's not anything to make dramatic portfolio moves or any significant bets on", said Katie Nixon, chief investment officer for the wealth management division of Northern Trust in Chicago. Italian newspapers said that Di Maio was seeking the premiership for himself. It has hesitated about signing up to a full-frontal confrontation with Europe over public accounts.

The opposition Democrats, who controlled the outgoing government, warn that the League's vow to drastically lower taxes to a flat 15-percent rate, and the 5-Star's promise to give government subsidies to low-income Italians will spook financial markets and drastically drive up government borrowing costs. "Only then will they release around 60 million hostages". While the two parties specified they had removed the section on possibly opting out of the euro, they made no mention about the suggestion the European Central Bank should write off this debt. But Giovanni Orsina, a historian at Rome's Luiss University and the author of a book about Mr. Berlusconi, said he could push for some policies behind the scenes. "We can not go to Brussels with positions that are far apart", he said.

Italy's debt mountain is €2.3bn, or 132% of GDP, the highest ratio anywhere in Europe apart from Greece.

"It's very clear that in current times of economic growth Italy needs to put its debt on a downwards trajectory", he said.


In Brussels, European Commission President Jean-Claude Juncker said the EU would not be complete without Italy, when asked at a news conference about Italy's role in the EU and its reliability in respecting common rules.

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

Right-wing League leader Matteo Salvini attacked "unacceptable interference from the EU" while Luigi Di Maio, of the anti-establishment Five Star Movement, spoke of "continuous attacks. from Eurocrats".

Speaking to Express.co.uk, Mr Kawczynski warned: "This is the beginning of the end of the European Union as we know it".

A 39-page document agreed to Wednesday night drops the writeoff demand but says that euro-area government bonds already purchased by the European Central Bank under quantitative easing should not count towards the debt-to-gross domestic product ratio, according to the Five Star official.

"For small caps, they are not exposed to a lot of the risks that larger caps are facing", McMillan said.

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