Италијански # Салвини каже да влада није у опасности, упркос свађи

The League and its coalition partner, the anti-establishment 5-Star Movement, clashed angrily at the end of last week over a corruption scandal involving a top League official, reviving speculation the government might collapse.

With Italian borrowing costs rising on Tuesday over political tensions and an upcoming review of its credit ratings, Salvini sought to play down the coalition infighting.

“The government is not at risk ... nothing is at risk,” he said on Facebook.

The coalition was thrown into turmoil on Thursday when Armando Siri, a transport ministry undersecretary, was placed under investigation for allegedly accepting bribes to promote the interests of renewable energy companies..

Siri’s boss, Transport Minister Danilo Toninelli, who is from 5-Star, stripped him of his responsibilities, prompting an angry reaction from the League.

 

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Long-running bickering between the two parties has intensified ahead of European Parliament elections in May, where they are competing against each other.

Italy’s 10-year government bond yield rose to its highest in seven weeks on Tuesday, and its bank stocks index was set for its worst day in a month.

Eurostat data on Tuesday (23 April) confirmed that Italy’s national debt rose to 132.2% of GDP last year from 131.4% in 2017, which could stoke a long-running row with Brussels over Rome’s compliance with EU fiscal rules.

The cabinet met later on Tuesday to approve a “growth decree” intended to help lift the economy out of a shallow recession it fell into at the end of last year.

The package focuses mainly on companies, increasing tax breaks on investments in machinery, cutting property taxes on factories and warehouses and simplifying procedures for public tenders.

The government was due to sign off on the decree almost three weeks ago, but delayed its approval due to disagreements over the details of the measures.

 

Its approval was thrown into doubt again over the weekend when Salvini threatened to withdraw the League’s backing because it includes measures to reduce the debt of Rome’s municipal government, which is run by 5-Star.

The League leader said on Tuesday there was no question the package would be approved later in the day, without giving further details.