Italy’s Five Star and League parties approach coalition after talks

Italy’s populist Five Star Movement has reached an agreement with the League party which it is hoped will break the country’s political stalemate.

Five Star’s leader Luigi di Maio said talks today had been “productive” and that negotiations were still ongoing over who will become prime minister.

The progress is likely to clear the way for a coalition government formed of the two parties.

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It comes after the parties spent the weekend locked in negotiations ahead of a Sunday evening deadline set by president Sergio Mattarella.

Italian elections in March were produced an inconclusive result, with the two anti-establishment parties attracting the most support. Together they will be able to hold a majority in both houses.

Both parties are sceptical of Italy’s position in the Eurozone and commitments to the EU’s budget rules.

Five Star has also called for a universal basic income scheme for the unemployed, while the League supports a flat income tax.

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