Login

Five Star and Lega Ask ECB to Cancel €250 Billion in Debt!

An agreement reached today between M5S and Lega contains an explosive request: Debt Cancellation!

Rumors last night the coalition was about to collapse seem to be false. Explosive details emerge today as noted in these Tweets.

Details

  1. Five Star and the League expect the ECB to forgive 250 billion euros in Italian bonds bought via quantitative easing, in order to bring down Italy's debt
  2. The two parties want to re-open European Treaties and to "radically reform" the stability and growth pact. The coalition would also want to reconsider Italy's contribution to the EU budget.
  3. According to @HuffPostItalia, the 5 Star/League draft agreement would include an opt-out mechanism to leave the euro in an "agreed manner" were there to be a "clear popular will" to do so.
  4. The draft document says Italy should stay in Nato, but asks for an immediate withdrawal of sanctions vs Russia, so that Moscow can return to be a "strategic partner" in conflict zones
  5. According to @HuffPostItalia, the 5 Star/League draft document says there would be a "flat tax"... but with several tax rates and deductions
  6. taly's pension reform would be dismantled: workers would be able to retire when the sum of their retirement age and years of contribution is at least 100.
  7. The draft coalition agreement of a 5 Star/Lega government leaked to @HuffPostItalia calls for a revision of the Dublin regulation on immigration and for compulsory relocation of asylum seekers across the EU
  8. The draft coalition agreement of a 5 Star/Lega government leaked to @HuffPostItalia calls for a revision of the Dublin regulation on immigration and for compulsory relocation of asylum seekers across the EU

This cannot possibly fly, but that's the platform.

Yesterday, Italian President Sergio Mattarella warned Lega and Five Star against an anti-EU platform.

Last night, there were rumors the coalition would collapse.

Today we see this agreement as outlined on Huffington Italy and as described above.

Addendum

Ferdi Guigliano who made the above translations now posts this:

I do not know what the revised deal includes.

Addendum Two

Draft confirmed except for exit of Euro

PD calls proposal irresponsible

Mike "Mish" Shedlock

(Other than the European Central Bank, of course).

Never, ever will the ECB give a dime. Greece has been waterboarded for a decade in the effort to protect creditors. Italy's day has now come. Its either pay your debts or leave the EU.

Except you can bully Greece. Italy is a founder and 3rd largest. It would be an admission of failure of the project for Italy to leave. They won't let that happen unless there is a shift in German politics imho,

Italy will dance the dance as long as it suits them. They will look how long the euro and ECB will give them something and after that it is default time. Nothing new here for someone that has lived in Italy and knows its history.

Stories