Splits in Italy threaten to derail euro-zone reforms

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Splits in Italy threaten to derail euro-zone reforms
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Populists from the Northern League and Five Star Movement are campaigning against euro-zone reforms

work during the sovereign-debt crisis in 2009-15, further fixes to the euro zone’s architecture have been few and slow. Northern countries have been unwilling to assume cross-border risks, as long as debts and non-performing loans in southern ones were high. Now quarrels within one of those southern countries, Italy, threaten what little progress has been made.

—the very parties that were governing in June—have begun campaigning against the plans. Matteo Salvini, the League’s leader, and deputy prime minister until he quit the government in September, says he did not see them, implying that the prime minister had acted in secret.

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