Italy's 5 Star, League agree coalition deal
Italy's Five Star Movement and the right-wing League parties on Friday agreed a deal to govern the country, promising tax changes, a basic income for the poor and pension reforms.
The deal was struck after 10 weeks of political interia caused by inconclusive election results in March where no one party gained a majority.
The agreement contained no mention of a demand to drop €250bn in debt, which had caused bond prices to plummet earlier in the week as investors fretted about how Europe's second most indebted country would raise revenues.
There were, instead, pledges on a two-tiered flat tax and a €780 a month basic income for poor families. An unpopular pension reform imposed after during the 2011 debt crisis was also slated to be axed.
"We want to strengthen confidence in our democracy and institutions of the state. We intend to increase decision-making in parliament and its cooperation with the government," the two parties said in their "contract" document released on Friday.
They also said the current European approach towards migration was "unsustainable for Italy" putting a strain on public finances "often managed with little transparency and permeable to infiltration of organized crime".
"Italy must play a decisive role at the European negotiating tables on asylum and immigration policies. You must aim at reducing the pressure of flows on external borders and of the consequent trafficking in human beings."