League's Borghi Voices Fresh Threat of Italy Quitting the EU
(Bloomberg) -- Italy’s Claudio Borghi, economic adviser to government coalition partner the League, is once again saying that his country should quit the European Union.
“I think this is the last opportunity. If after these elections we’ll have the usual ‘mandarins’ led by Germany to decide economic, social and migration policy, for the benefit of Germany and to our detriment, I will ask to leave,” he said Friday during an event in Milan referring to upcoming European elections, according to remarks quoted by Ansa.
Italian bonds slumped after his comments, with 10-year yields rising as much as 11 basis points to 2.91 percent. The spread over their German peers -- a key barometer of risk in the nation -- rose to 280 basis points.
It is not the first time that the lawmaker, who is also head of Italy’s lower house budget committee, goes on an offensive against the EU, and he has for long maintained that Italy would be better off outside the euro.
Borghi, who was involved in last May’s negotiations with the Five Star Movement to create the current ruling coalition, has said that regardless of his ideas the government has no plans to leave the single currency.
Government coalition partners the League led by Matteo Salvini and Five Star headed by Luigi Di Maio. Both are waging a protracted election campaign ahead of a European parliamentary vote in May, whose outcome is likely to change the balance of power within the coalition.
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