Merkel rules out Italian debt relief

Italy's Debt Burden       More than 600 billion euros of Italy's debt matures in the next three years.                      Source Bloomberg

Italy's Debt Burden More than 600 billion euros of Italy's debt matures in the next three years. Source Bloomberg

But Merkel was adamant that solidarity among eurozone countries should not lead to a "debt union".

It comes after reports the anti-establishment 5-Star Movement and far-right Lega had planned to ask the European Central Bank to forgive €250 billion of Italian debt.

The new power in Rome, made up of two parties that generally oppose the euro, as Reuters writes, took office on Friday considering referendum on or against a denial of the single European currency in the country.

German Chancellor Angela Merkel has proferred a solution to cushion the effect of the imposition of new tariffs by President Donald Trump on the importation of steel and aluminum which has sparked outrage by allies of the United States of America.

Merkel refrained from outright criticism of Trump in her comments to the newspaper, but noted that the USA has withdrawn from multilateral agreements and imposed new tariffs on steel and aluminum imports, including from Europe. "Such loans would be spread over 30 years and be conditioned on sweeping structural reforms".

"I can imagine the possibility of a credit line that is short-term, five years for example".

A French government source said, however, that more work still needed to be done for an "ambitious agreement on the monetary union".

"This is very pleasing", SPD leader Andrea Nahles told the ARD public broadcaster. EMF should have the capacity to evaluate the economic situation in member states on its own.

She said she views Macron's idea of a joint intervention force "positively", but that many details would have to be worked out. "In the future we will have to react to the challenges that we are faced with", she said.

Conte, a little-known Italian law professor, has mostly kept quiet since being sworn in on Friday, but he announced on Facebook that, along with Merkel, he had also held talks with France's Emmanuel Macron on Saturday. League leader Matteo Salvini, Italy's new interior minister, has said that Italians "aren't the slaves" of European Union powerhouses Germany and France.

This story has not been edited by Firstpost staff and is generated by auto-feed.

Latest News