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Italy’s public finance situation is worrying global markets, just as the newly-elected populist coalition is plotting its economic course. The coalition made dramatic promises to voters that could blow past deficit targets and push Italy toward default, bailout or an exit from the euro. But despite their recklessness, the Five Star Movement and the League are more likely to moderate their economic programs — that is, if they can manage to keep their alliance together.
Professor Enrico Colombatto