ROME (Reuters) – Italy’s anti-establishment 5-Star Movement and League parties will seek the backing of the president on Monday for a prime minister to lead a government whose plans to jack up spending were roiling financial markets.
Eleven weeks after an inconclusive election, the rival parties are poised to put forward a prime minister whose program — agreed last week — calls for billions of euros in tax cuts, additional spending on welfare for the poor, and a roll-back of pension reforms.
Premier - Name - Media - Candidate - University
While the premier’s name has not been confirmed, Italian media say the leading candidate is a little-known university professor, Giuseppe Conte, who is not a lawmaker, but was proposed as a possible minister by 5-Star before the vote.
President Sergio Mattarella has the final say on who becomes premier. If he should give his blessing after the meetings, which start at 1530 GMT, the parties could put a Cabinet together rapidly and hold confidence votes in parliament later this week.
Bond - Yields - Monday - Fears - Government
Italian bond yields rose sharply on Monday on fears the government will go on a spending spree that will increase an already huge debt pile — worth more than 130 percent of output — and put it on a collision course with European Union fiscal rules.
Markets were also hammered last week when the two parties presented their government plans.
Italians - Tie-up - Percent
But Italians appear to favor the tie-up. Some 60 percent...
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