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A8 WORLD NEWS
Thursday 31 May 2018
Italy's populists get another chance to form government

By NICOLE WINFIELD League leader Salvini said
COLLEEN BARRY he would be willing to look
ROME (AP) — Italy's presi- again at the 5-Star-League
dent gave populist poli- agreement that had
ticians another chance formed the basis of their
Wednesday to try to form proposed alliance.
a coalition government The contract called for
after his naming of an in- heavy spending to intro-
terim leader roiled global duce a basic income for
markets that feared a new needy Italians and a two-
election would amount to tier flat tax, as well as pen-
a referendum on the euro. sion reforms, but was light
Carlo Cottarelli, the former on financing details.
International Monetary But Salvini also insisted that
Fund official tapped Mon- the proposed Cabinet be
day to be a neutral, tem- accepted, Savona includ-
porary premier, said "new ed. Salvini also put forward
possibilities" had emerged adding another member of
for a government based the center-right bloc, Gior-
on the results of the March gia Meloni.
election to run Italy rather Left unclear was whether
than the government of one or both parties would
technocrats he would di- again pull the plug if Savo-
rect. The League leader Matteo Salvini speaks from a stage during a campaign rally for local election na was rejected by the
The two populist parties in Massa Carrara, Italy, Wednesday, May 30, 2018. Italian president, or if Mat-
that prevailed in the March Associated Press tarella would relent and
4 vote — the euroskep- approve him.
tic 5-Star Movement and different capacity. to be filled with someone fueled by euroskeptic out- Economic analyst Lorenzo
the right-wing League — But League leader Matteo who would reassure mar- rage spooked investors Codogno said any pos-
presented their proposed Salvini appeared to hold kets and Italy's European who feared the election sible political government
Cabinet over the week- firm, saying: "Why can't partners. would become a vote on would likely mean tweaks
end. Italian President Ser- we have a minister in Italy Mattarella's office said it whether Italy should aban- to the coalition agreement,
gio Mattarella vetoed their even though the Germans was studying Di Maio's pro- don the euro, with uncer- including dropping Savona
euroskeptic economy min- don't like him?" Germany is posal "with attention." tain consequences for Eu- as economy minister.
ister, collapsing the deal. the economic powerhouse After the president turned rope's economy. "The initiative for a new
Leaders of both parties sig- among the European to Cottarelli to form a neu- By Wednesday, markets anti-establishment gov-
naled a willingness to try countries that have adopt- tral government that would had largely recovered ernment ... would have to
again late Wednesday. ed the euro as their official lead Italy until an early with the news of a second imply a credible pro-Euro-
5-Star leader Luigi Di Maio currency. election was held, stock chance for a longer-term pean commitment and a
suggested they come up Mattarella nixed Savo- markets plunged Tuesday arrangement. The Milan commitment to the Italian
with a different economy na, who has questioned in both Europe's third-larg- stock exchange closed up Constitution, i.e. the fiscal
minister while keeping the whether Italy should keep est economy and around more than 2 percent and framework, to have any
previous candidate, Paolo the euro, on the grounds the world. government borrowing chance of flying," Codo-
Savona, in the Cabinet in a that the position needed The prospect of a new vote rates eased. gno said.q
Greek workers join general strike as end of bailout looms

The 24-hour strike called by "The government is a few weeks, have been
the country's largest unions continuing disastrous overshadowed by the
also closed schools and left policies for society and political crisis in Italy and the
public hospitals running on the economy, forcing resulting financial turmoil.
emergency staff. unsustainable measures Eurozone member Greece
Government budget onto the backs of wage- has relied on money from
austerity measures are due earners and retired people," three consecutive bailouts
to continue for at least the country's largest union, since losing market access
two more years after the the GSEE, said. in 2010. The rescue loans
international bailout ends "The constant deterioration have been provided by
in August, starting with in the living standards is part other EU countries that use
another major round of of a downward trend that the euro as their currency
pension cuts next January. people (in government) and the International
Thousands of protesters chose not to see," the union Monetary Fund, though
gathered in central Athens said. Greece is currently the IMF has held off on a
Members of the Communist-affiliated PAME labor union gather and the country's second negotiating the terms of its cash contribution toward
during a rally in Athens, Wednesday, May 30, 2018. largest city of Thessaloniki. bailout exit with European Greece latest program.
Associated Press In the capital, more than creditors, including how its A new round of
8,000 people marched finances will be monitored administrative and market
ATHENS, Greece (AP) — A halted ferry services to through the streets in and the conditions of reforms demanded by
general strike in Greece the islands, and disrupted separate demonstrations, a promised debt relief creditors is due to be voted
against plans to extend flights, public transport and while about 3,000 more package. But the talks, on in parliament on June
austerity measures has other services Wednesday. protested in Thessaloniki. due to be concluded in 14.q