Italian Populists Seal Pact to Challenge EU Establishment

  • Parties still to say who they’ll nominate to be prime minister
  • League and Five Star pledged tax cuts, more spending for poor
Mario Monti Says It Is Wrong to Under-Valuate Market Reaction to Italy Program
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Italy’s populist leaders sealed a coalition agreementBloomberg Terminal that aims to ramp up spending on the poor and slash taxes in a direct challenge to the European Union establishment.

After 10 days of negotiations, 31-year-old Five Star leader Luigi Di Maio said Friday that he’s settled the final issues with Matteo Salvini, 45, of the anti-immigrant League and their policy platform is ready for party members to vote on. The program, posted online, demands a review of EU budget rules, an end to economic sanctions on Russia and pledges to roll-back pension reforms that raised the retirement age.