The populist parties of the League and the 5-Star Movement signed an accord to form a ruling coalition. Euro’s reaction so far has been relatively muted, even though it weakened as touch.
That’s probably because the final accord dropped the proposal to create fiscal headroom for Italy by changing the formula for calculating debt burden. Instead, it just called for a review of EU governance and fiscal rules.
The coalition government could take office as early as next week. But there is no announcement on who would be the Prime Minister.
