The culmination of months of negotiations between the anti-immigrant Northern League and the anti-establishment Five Star Movement has arrived Wednesday afternoon in the form of a forty page comprehensive policy agreement reached between the two parties, according to Ansa, the Italian newswire.
Northern League Deputy Claudio Borghi confirmed in a tweet that negotiations have produced an agreement that must now be approved by party leaders Matteo Salvini, who represents the Northern League, and Luigi di Maio, who represents the Five Star Movement.
Finito il lavoro. Sono PIATTO ma è stata un’esperienza fantastica. Adesso il plico va ai capi per le opportune decisioni.
— Claudio Borghi A. (@borghi_claudio) May 16, 2018
While the document hasn’t been publicly released since six or so of its provisions are still awaiting approval, while the rest have been formally closed, Ansa reported. Importantly, the agreement omitted a provision setting out a plan for Italy possibly exiting the euro bloc.
Instead of the euro provision, the document only advocated revising certain provisions in some of the European Union’s founding treaties, like the Maastricht Treaty.
Di Maio and Salvini are planning a meeting tonight to take stock of the last remaining disagreements in the program contract.
Italian bond yields jumped on the news as investors worried about the impact of the euroskeptic government’s leadership – even though party leaders denied earlier reports that Five Star would petition the European Central Bank to forgive 250 billion euros of Italian debt.
The euro also climbed on the news.