The leader of the Five-Star Movement (MS5) Luigi Di Maio (L), May 7, 2018, and that of the League, Matteo Salvini, April 12, 2018
Exit of the euro, renegotiation of European treaties, cancellation of 250 billion euros of debt … A draft of “government contract” in Italy between the League (far right) and the M5S (populist) published by the press raises a wave of concern, although both parties say the document is not definitive.
While the two parties were still negotiating on Wednesday to form the first anti-system executive in Italian history, the Huffington Post’s publication of a draft “government change contract” was like a bombshell.
Confirmed to AFP by a source close to the M5S, this “draft” from Monday morning is however “outdated” and was “largely modified”, quickly reacted in a statement the two formations emerged winners of the legislative elections of March 4 .
The poll, however, did not allow each of them to obtain a single majority in parliament, forcing them to join forces to gain power.
Among the many measures listed in the 39-page document is the introduction of “technical measures of an economic and legal nature that allow member states to leave the monetary union, and thus regain their monetary sovereignty”.
A passage also mentions the possibility of asking the European Central Bank (ECB), led by the Italian Mario Draghi, to cancel some 250 billion euros of Italian debt held in the form of government securities by the institution of Frankfurt.
Another measure advocated was the creation of a “conciliation committee”, a party-related structure parallel to the government, to settle any disagreements between the two political forces.
As soon as it was published, the text provoked an avalanche of reactions in the press, journalists and experts criticizing in particular its “naivety”.
“Destroy Italy to harm Europe,” commented the daily La Repubblica, close to the left.
– To calm the spirits –
The financial markets did not appreciate either: the Milan Stock Exchange was down 1.81% in mid-day, worst performance of European stock markets, while the spread – the gap observed in Italy between Ten-year Italian and German loan was 142 points, up sharply from 131 points on Tuesday night
Tuesday, the leaders of both parties Matteo Salvini (League) and Luigi Di Maio (M5S) have once again announced the imminence of an agreement, promising to go expose it to the Italians this weekend on stands installed across the peninsula.
The talks, which seemed to be coming to a close on Monday, had to be prolonged when Mr Salvini laid down his conditions in the fight against immigration or European policy.
Their respective formations, meanwhile, tried to appease the spirits by explaining that the version of the “contract of government” on which he worked did not correspond to that which was published “by the press.
Many content has “changed radically” especially on the euro, the two parties having “decided not to discuss the single currency,” they said.
In terms of immigration, both parties believe in this version of the text that the current situation is “unsustainable for Italy” which must regain “a more decisive role” at the table of European negotiations.
They consider it necessary to “go beyond the Dublin Treaty”, which states that the EU Member State through which a refugee enters the European Union is competent to process the asylum application and reception.
A rule that most refugees are hosted in southern European countries, such as Italy, Spain or Greece.
For Lorenzo Codogno, former chief economist of the Italian Treasury and now head of the firm LC Macro Advisors inventory measures reveal “the quirk, inexperience and offbeat side of both formations.”
“The attitude of the financial markets will not be the same from now on,” he adds.