Today, both the 5-star and the far-right League, the anti-establishment in Italy, met today to finalize a deal to cut taxes and increase spending, the biggest challenge to the EU has faced since Brexit referendum.
Both parties, are the largest of the two parties won votes in the last election in March. They discussed forming a coalition government and ending more than 10 weeks of political deadlock.
In direct defiance of the EU's financial rules, the two parties aim to legislate and implement policies that would violate those rules of fiscal discipline, which could increase Italy's debt burden, which rules demand to be reduced. The debt account as a percentage of GDP is about 130% in the second place after Greece.
