Populists are on the verge of forming a new government in Italy, the third biggest economy in the eurozone.
They’ve dropped some of their most explosive election campaign pledges, such as calling for a referendum on whether Italy should abandon the euro, or leave the European Union.
But a prospective coalition of the anti-establishment Five Star Movement (M5S) and far-right League party is promising a spending and tax-cutting binge that has rattled investors and could contain the seeds of a new European crisis.The Milan stock index has slumped 2.5% this week, compared to a 0.6% gain in the wider European […]
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