Italy and the twin problem of feuding politicians and frequently plunging bond prices

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Italy and the twin problem of feuding politicians and frequently plunging bond prices
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During the recent European parliamentary elections, Italy saw a significant reframing of its government's political dynamics.

Even if you discount for the fact that EU elections typically attract a significantly lower turnout than national polls, it was still striking that the government's junior coalition partner, the anti-immigration and euroskeptic Lega party, saw its popular support double from the 17% of voters it attracted in last year's general election.

The past twelve months have provided no end of drama, gossip and intrigue for political observers in Rome, with cabinet ministers fired amid corruption allegations and insults hurled publicly at senior European Commission officials during disputes over Italy's finances.

One solution to reignite Italy's sluggish growth, Visco argues, is to "harmonize and recompose" the country's antiquated and disjointed tax code. This suggestion was seized on last week by Salvini, who has tried but so far failed to prioritize lower taxes, and in particular proposals for a flat tax rate.

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