EU fears new Italian policies could set stage for next euro zone crisis


  • World
  • Thursday, 17 May 2018

FILE PHOTO: The new Chamber of Deputies president, Five Stars Movement (M5S) Roberto Fico speaks at the Chamber of Deputies during the second session day since the March 4 national election in Rome, Italy March 24, 2018. REUTERS/Tony Gentile

BRUSSELS (Reuters) - 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.

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