20 May 2018

Politico: Italy’s coalition agreement explained

The document does not say who will become prime minister. The top job is expected to go to the 5Stars, the largest of the two parties, but negotiations between the two leaders will continue over the weekend. Di Maio is still seen as the leading candidate for the job, even though Salvini has said that won’t happen. [...]

But the agreement takes clear aim at the European Union, calling for a reevaluation of the EU budget and a review of “European economic governance” — namely the EU rules imposing fiscal constraints on national governments. These, the parties say, are based more on the “predominance of the market” than on people’s economic and social needs. [...]

The “universal citizens’ income” promised by the 5Stars is included, but in a watered-down form. The measure as described in the document resembles a form of unemployment insurance that would last for a maximum of two years while its recipient looks for a job. A promised roll back of a hike in retirement ages called for by both parties has also made the cut. Meanwhile, a planned “flat tax” of 15 percent strongly pushed by the League has become a dual rate of 15 and 20 percent with tax deductions for families based on their incomes.

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