ROME (AP) – The economist who tried to form an Italian government amid political gridlock said Friday he’s “truly worried” that the costly measures on the new populist leaders’ agenda will further swell Italy’s national debt and trigger a negative reaction by the financial markets.
Carlo Cottarelli told reporters in Rome that a policy of increasing the public debt, as proposed by new Premier Giuseppe Conte, is “something that will leave Italy exposed to speculation” by the markets.
Conte’s week-old government, forged between the right-wing League party and the euroskeptic 5-Star Movement, is insisting that, if necessary, it will press the European Union to loosen regulations so that escalated spending won’t by stymied by EU rules.
Italy is one of the 19 nations using the shared euro currency.
Luigi Di Maio, the leader of the 5-Stars, has promised to give those who are jobless or have low incomes or pensions a guaranteed monthly minimum income of 780 euros ($918). League leader Matteo Salvini wants to drastically lower tax rates by enacting a flat-tax system. Both want to undo pension reforms that have raised Italy’s retirement age.