Italy’s Precarious Economy Again Threatens the E.U.

Once again, Italy and the E.U. are headed toward confrontation. They fought a protracted battle last year over the impact of Italy’s budget on its debt before arriving at a compromise in December, but the problem has re-emerged, and it’s not clear whether a larger fight can be avoided.

In recent days, Italy’s technocratic Prime Minister has pledged to resign if leaders of the Five Star Movement and the League, the two parties that make up the country’s fractious coalition government, fail to put aside differences to agree on a budget the E.U. will accept, one that won’t saddle Italy with ever more dangerous levels of debt.

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