Italian Government: Leaders Reach New Deal on Coalition

Italian Government: Leaders Reach New Deal on Coalition
The Italian flag waves over the Quirinal Palace in Rome, Italy May 30, 2018. Reuters/Tony Gentile
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ROME—Italy’s populist parties revived coalition plans on Thursday, May 31, ending three months of political turmoil by announcing a government that promises to increase spending, challenge European Union fiscal rules and crack down on immigration.

The coalition deal, following inconclusive elections in March, removes the risk of a repeat vote, a prospect that had sparked a big selloff in Italian financial markets this week.