Europe Italy parties’ govt agenda includes short-term bonds to pay firms

Italy parties’ govt agenda includes short-term bonds to pay firms

Image result for Economy Minister Pier Carlo Padoan
Economy Minister Pier Carlo Padoan

The government programme of Italy’s two anti-establishment parties includes the issuance of short-term government bonds to pay companies owed money by the state, said the economics chief of one of the parties on Friday.

Earlier this year, outgoing Economy Minister Pier Carlo Padoan criticised the proposal, which he described as “a plan to circulate a disguised parallel currency”.

 Leaders of the League and the 5-Star Movement, the two parties that won the most parliamentary seats in the March 4 election, agreed on Thursday a governing accord to break a political stalemate that has dragged on since the vote ended with a hung parliament.Asked by Reuters if the so-called “mini-BOTs” — named after Italy’s short-term Treasury bills — were part of their government plan, the League’s Claudio Borghi said: “Yes”.

The sweeping governing plan includes radical measures to slash taxes and ramp up welfare spending in a direct challenge to European Union spending rules.

At around 132 percent of gross domestic product, Italy’s debt is the highest in the euro zone after Greece’s.

However the two parties, which have a history of euroscepticism, put no reference in their programme to dumping the single currency or holding a popular referendum over membership.