ROME, May 17 (Reuters) – A proposal by the 5-Star Movement and the far-right League to exclude government bonds held by the European Central Bank from countries debt calculations can help Italy meet European rules on debt reduction, a 5-Star lawmaker told Reuters on Thursday.
A draft policy agenda drawn up by the two parties as the basis of a coalition government includes a proposal that sovereign debt bought by the ECB under its quantitative easing programme not be counted in EU countries debt-to-GDP ratios.
The only effect (of the proposal) is to make it easier to respect the fiscal compact, said 5-Star deputy Laura Castelli, who helped draw up the parties joint programme.
The EUs fiscal compact imposes steep annual reductions in the d…
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