The two anti-establishment sides looking to clinch power in Italy will not take the country out of the euro zone and give someone the brush-off the single currency, the co-chief of asset management firm Standard Vital spark Aberdeen told CNBC Wednesday.
The resurgence of the Five Star Migration (M5S) and Lega — two anti-establishment parties putting together the next Italian authority — has raised concerns that the third largest euro zone concision could leave the bloc. Both parties have, at different stimuli, mentioned plans to depart from the common currency pact, however M5S has softened its stance on the issue over time. Nonetheless, the coalition contract between M5S and Lega does not include any reference to officially leaving the 19-member quarter.
“Clearly the result in Italy has made people think about the anti-euro lobbyist,” Martin Gilbert told CNBC’s Joumanna Bercetche in Brussels, but added: “I don’t of we are going to see any significant change.”
“I don’t think we are going to see a Brexit for instance … I don’t about we are going to see anything of that magnitude.”
The new power-sharing deal between Lega and M5S has usher various analysts to predict the future for the embattled euro nation that however has hefty public debt loads and sizeable non-performing loans in its banking sector. UBS strategists asserted in a note Tuesday that the question is whether this new coalition brings the European launch under closer scrutiny.
“We believe this is unlikely given Italian directors have already backpedalled from their most extreme inclinations,” the analysts said.
The incoming coalition’s intention to increase public pass and re-negotiate European fiscal rules could spark heated talks with Brussels. The focus is now on President Sergio Mattarella, who needs to approve the celebrities of the new cabinet. Mattarella is taking his time to sign off the choice for prime abb — private law professor Giuseppe Conte — and also the choice for finance aid, Paolo Savona — a euroskeptic economist. Expectations are that Mattarella will advertise his decisions on Thursday.