Italian parties agree agenda to form govt

Italy’s anti-establishment 5-Star Movement and centre-left Democratic Party (PD) unveiled a shared policy programme yesterday for their mooted coalition, putting an expansionary 2020 budget at the top of their agenda.

5-Star, created a decade ago out of opposition to the PD, has agreed to form a new administration with its former foes to head off a snap election after its previous coalition with the far-right League collapsed last month.

Supporters of 5-Star are holding an online ballot on whether to support the proposed coalition and results were due by 1730 GMT. Shortly after the voting started, the parties published a 26-point programme that would underpin the planned government.

“This is a very delicate moment for the country. It must be tackled by focusing on the interests and needs of citizens, of the community that we all form together,” 5-Star said in a blog yesterday, calling on its supporters to back the deal.

Italian benchmark 10-year bond yields hit record lows yesterday in a sign that investors believed the new administration would take office, heading off the risk of an early election and prolonged political instability.