Eu Fears New Italian Policies Could Set Stage For Next Euro Zone Crisis


BRUSSELS – Italy’s emerging ruling coalition is likely to put deeper euro zone integration on hold and could set the stage for the bloc’s next crisis if it delivers on its tax-cutting and high-spending policies, European policymakers and economists fear.

Italy’s anti-establishment 5-Star Movement and the far-right League are nearing a government coalition deal that would bring together two parties which both want to challenge European Union limits on government borrowing and spending.

EU rules limit government budget deficits to 3 percent of gross domestic product and debt to 60 percent of GDP and oblige governments to seek balanced budgets.

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