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Populist plans set Italy on a collision course with Brussels

2018-05-17 10:44:21       source:The Times

May 17, 2018

Italian populists on the brink of forming a government remained defiant yesterday as markets trembled over leaked revelations that they plan to write off billions of euros of debt.

Italian stocks slid on the news and borrowing costs increased as financiers reacted to a policy document saying that the Five Star Movement and the anti-migrant League had considered procedures for leaving the euro and writing off €250 billion in debt.

The spread between Italian and German bonds widened sharply — showing a lack of confidence in Italian economic plans — despite the parties claiming that the document had been superseded since it was written on Monday and that they no longer wanted to leave the euro.

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