Matteo Salvini of the anti-illegal migrant League party across the wires 14 March
- govt with 5 Star is possible
- we will only try to form a govt as part of centre-right coalition, not unilaterally
The two populist parties unsurprisingly looking to block out the others and both propose tax cuts. Salvini’s party came out of the election with the largest share of votes around 37%
5 Star leader Di Maio has recently noted he would not work with European extremist parties but also said:»We want to move quickly.If the other parties want to propose other measures that will help people then we are ready to discuss them»
Formal talks on creating a new government only start after 23 March when the new parliament picks speakers for the upper and lower houses.
EURUSD currently 1.2362 from 1.2349 expiry time lows. EURGB also back up to 0.8855 from 0.8845.
Italian 10-year bond yield rising too. Italy/German 10-year yield gap widens to 143 bps from 140 bps before Salvini’s comments.
League’s Salvini says 5 Star deal possible