EU May Not Enforce Its Rules On Italy, But Financial Markets Will

On Friday, Reuters reported that EU officials may not enforce their rules on Italy’s new government, hoping there will not be a need to, because financial markets can do the job for them. A new government is expected to take office in Italy next week, a coalition of the anti-establishment 5-Star Movement and far-right League. Both have jointly promised tax cuts and spending increases that would burst through the EU’s limits on borrowing by member states.