Economics

Italy's Populist Government Faces First Big Test of Unity

  • Fractious populist coalition due to unveil budget targets
  • Tensions divide coalition partners, targets a test of unity
Italian Budget Negotiations Hit by Last-Minute Dispute
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Italy’s government is bracing for the first major test of its unity as the coalition partners seek to agree on a fiscal framework that will determine just how much money they’ll have to spend on expensive electoral promises.

Weeks of tensions have set the two populist deputy-premiers -- Luigi Di Maio of the Five Star Movement, and Matteo Salvini of the League -- against Finance Minister Giovanni Tria in a fight over how far the public finances can be stretched next year.