ROME, May 16 — Leaving the euro, renegotiating EU treaties and writing off €250 billion (RM1.2 trillion) of Italian debt are some of the measures proposed in a draft government agreement between Italy’s rebellious Five Star Movement (M5S) and far-right League party, published on the Huffington Post website.
The anti-establishment groups are locked in negotiations in a bid form Italy’s next government after two months of political deadlock following inconclusive elections in March.
At the polls, M5S became Italy’s largest single party in parliament while the League headed up a right-wing coalition which garnered the most votes on election day.
In a statement the League and M5S said the draft, which dates from Monday, was now “outdated” and had undergone “substantial modifications” since its creation.
Among the more drastic measures in the lengthy 39-page document is the introduction of “legal and economic measures which would allow EU members states to leave the single currency and regain monetary sovereignty”.
While another passage forsees the possibility of asking the European Central Back to write off €250 billion of Italian debt currently held by the institution and advocates a “renegotiation” of European treaties.
The text also calls for the creation of a “conciliation committee” parallel to the government, which would be responsible for settling any disagreements between the two vastly different political forces.
As soon as the text was published it caused a stir in the media with a host of journalists and experts criticising its “naivite”.
Financial markets also responded negatively with the Milan stock exchange opening down 0.75 percent, the worst performance of the European stock markets, and the country’s borrowing costs going up.
Facing flak, the League and M5S distanced themselves from the draft saying that elements had “radically changed” and that the parties had decided not to “call into question the future of the single currency” in Italy. — AFP
