Wednesday, May 16, 2018

Italy's populists, rightwingers want Italexit and ECB to cancel billions in debt: report

Italy's populists, rightwingers want Italexit and ECB to cancel billions in debt
The populist Five Star Movement and the rightwing League party are working on a joint government program that includes a possible exit from the eurozone and asking the European Central Bank (ECB) to cancel billions in Italian public debt, the Huffington Post reported Tuesday evening, posting the 39-page draft document on its website.

The two parties were the top vote-getters in Italy's last general election and have been in government-formation talks for almost a week.

"European economic governance ... based on market dominance and on strict rules that are baseless and impossible to sustain from the economic and social viewpoint must be radically modified," the program, or "contract" as the two sides are calling it, recites on page 35.

"At the same time we must introduce specific procedures ... allowing member states to recede from monetary union, thus recovering their monetary sovereignty."

On page 38, the document says that by the end of its quantitative easing (QE) bond-buying program, the ECB "will hold approximately 250 billion euros' (about 297 billion US dollars) worth of BTPs (or Italian 10-year bonds). Cancelling them will reduce public debt by about 10 percentage points."

Italy's public debt topped 2.302 trillion euros in March, breaking a record high of 2.3 trillion in July 2017, the Bank of Italy reported Tuesday.

Earlier, League chief Matteo Salvini lashed out at the European Union (EU) after top European officials said Italy's new government should keep reducing its debt, respect EU rules, and stick to an open-door immigration policy.

European Commission Vice President Jyrki Katainen earlier warned that EU fiscal rules "apply to all member states" and the Commission "won't grant exceptions to anyone", while EU Migration Commissioner Dimitris Avramopoulos said it is to be hoped Italy's new government won't change its immigration policy, ANSA news agency reported.


  1. Ένα «προσχέδιο κυβερνητικής συνεργασίας Λέγκας και Πέντε Αστέρων», αποκάλυψε απόψε η ιταλική έκδοση της διαδικτυακής πύλης Huffington Post.

    Στα κύρια σημεία του γίνεται αναφορά σε κανόνες για ενδεχόμενη έξοδο της χώρας από το ευρώ, στην άρση των κυρώσεων σε βάρος της Ρωσίας και σε αίτημα προς την Ευρωπαϊκή Κεντρική Τράπεζα, να «σβήσει» 250 δισεκατομμύρια ευρώ από το δημόσιο χρέος της Ιταλίας.

    Λέγκα και Πέντε Αστέρια απάντησαν ότι πρόκειται για σχέδιο το οποίο πρέπει να θεωρείται, πλέον, ξεπερασμένο, διότι έχει αλλάξει με ουσιαστικό τρόπο. Πρόσθεσαν, δε, ότι δεν τίθεται υπό αμφισβήτηση η παραμονή της χώρας στο ευρώ. Η Ρωσία στο συγκεκριμένο προσχέδιο χαρακτηρίζεται «οικονομικός και εμπορικός εταίρος», αν και οι Ηνωμένες Πολιτείες παραμένουν «κύριος σύμμαχος της Ιταλίας».

    Σχολιαστές, τέλος, εκφράζουν τον φόβο ότι οι συγκεκριμένες διαρροές θα μπορούσαν να δημιουργήσουν προβλήματα στην ιταλική οικονομία, με ενδεχόμενη αύξηση του σπρεντ.
    Πηγή: ΑΠΕ

  2. Italy's two populist parties will try to reach a deal on forming a government after a leaked draft revealed plans to defy EU rules on migration and debt.
    One of the draft ideas is to demand the cancellation of €250bn (£220bn; $295bn) of Italian bonds bought by the European Central Bank.
    Italy has the second highest public debt in the eurozone.
    The two party leaders also launched an attack on EU officials, accusing them of interfering in the talks process.
    Three EU commissioners have already stressed there is no appetite for any change in the rules.
    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".
    They also condemned the leak of the draft deal by HuffPost Italia and said the proposals, dated 09:30 on 14 May, were out of date.


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