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Italy's Salvini May Seek New Election as Budget Fuels Crisis

  • Sovereign bonds gain on possibility of more stable government
  • Prime Minister Conte to meet with EU on Wednesday in Brussels
Matteo Salvini reacts during a news conference at the Foreign Press Association in Rome, on Dec. 10.

Matteo Salvini reacts during a news conference at the Foreign Press Association in Rome, on Dec. 10.

Photographer: Alessia Pierdomenico/Bloomberg
Updated on

As Prime Minister Giuseppe Conte prepares to present his budget in Brussels on Wednesday, one of the main powers behind Italy’s government, League leader Matteo Salvini, may be looking beyond the crisis a failed spending plan could trigger and toward new elections early next year, la Repubblica reported.

With both Salvini and fellow Deputy Prime Minister Luigi Di Maio of the Five Star Movement refusing to agree to a 2019 deficit below 2.1 percent, Conte’s mission to Brussels is seen within the government as a “certain defeat,” Repubblica said, with an excessive deficit procedure from the European Union to follow.