Italy government: Leaders talk amid political crisis

BBC (05/30/2018)
  • Growing political turmoil in Italy pushed global markets lower yesterday.
  • Two populist parties (Five Star, The League) who won large vote shares in Italy’s recent elections (March 2018) have been unable to form a coalition.
  • ‘Eurosceptic’: Lacking a permanent government (parties unable to combine to form majority), many fear that eventual leadership (may call early election) potentially hostile towards reform efforts could promote EU exit.
  • Yesterday, Italy’s borrowing costs hit the highest levels since the 2012 Euro crisis (Italian banks rely on EU support).