Published: Mon, May 14, 2018
Worldwide | By Jermaine Blake

Star Movement and League strike governing deal for Italy

Star Movement and League strike governing deal for Italy

Di Maio appealed to Matteo Salvini, the leader of the far-right League, to join his call to hold a snap vote in June.

Scrapping the unpopular pension reform would cost €15bn, another €12.5bn is needed to head off the planned hike in sales tax, and the parties are also considering printing a new, special-purpose currency to pay off state debts to firms, reported Reuters.

Di Maio and Salvini will meet in Rome on Monday before updating the president.

It comes after the parties spent the weekend locked in negotiations ahead of a Sunday evening deadline set by president Sergio Mattarella.

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The anti-establishment 5-Star and the far-right League have made "significant steps" toward forming a government to end nine weeks of political deadlock.

The parties have reportedly agreed on rolling back increases to the age of retirement while Five Star is broadly willing to follow the League's hardline anti-immigration policies.

Officials in Brussels have warned Italy for years about its fiscal discipline and the need to lower its debt load. Together they will be able to hold a majority in both houses.

Five-Star secured 32% of the vote during the March 5 poll, with Lega coming out on top of a three-party right-wing alliance that includes former Prime Minister Silvio Berlusconi's Forza Italia. M5S is by far Italy's largest single party after conquering almost 33 percent of the electorate.

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