To the extent that anything is certain in Italian politics it looks like 5 Star, League have likely reached a deal to form government

Last week Capital economics published a note titled Should we worry about a M5S-League alliance?


The firm specifically noted:

  • a renewed push from both parties to leave the euro-zone is not out of the question.

"Not out of the question", but CE say its not likely either (bolding mine):

  • the government would be Eurosceptic, but an imminent euro exit is unlikely
  • Since the election, M5S has been more conciliatory towards the EU. And while both M5S and the League have in the past suggested leaving the euro, neither party currently favours an exit. After all, a majority of the Italian public still supports euro membership. That said, the parties could one day renew their calls for leaving the union, perhaps if public support for the euro wanes or if the parties slip in the opinion polls.