Published: Thu, October 11, 2018

EU far-right leaders take on Brussels

EU far-right leaders take on Brussels

Le Pen said, at a meeting in Rome, that she wanted to clarify "lots of conjecture" about Bannon's plans to set up a foundation, called The Movement, to boost far-right parties in Europe.

His words failed to reassure the market, with 10-year yields hitting a 4-1/2 year high IT10YT=RR , pushing the premium investors demand for holding the bonds over top-rated Germany paper to around 312 basis points, its widest in five years.

"We are against the enemies of Europe - Jean-Claude Juncker and Pierre Moscovici - shut away in the Brussels bunker".

The populists have blamed Brussels for slamming Italy's proposed budget, accusing the European Commission of driving up the spread. Luigi Di Maio shrugged off the criticism, saying his anti-austerity view will grow stronger across the continent. He's in Berlin Monday for talks with officials including Economy and Energy Minister Peter Altmaier.

Sterling fell 0.7 per cent to US$1.3034, wiping out all of its gains last week, as markets focused on any substantial breakthrough in Brexit negotiations as Britain moves nearer to an exit deal with the European Union. Prime Minister Giuseppe Conte hosted the EU's chief Brexit negotiator Michel Barnier in Rome. Meanwhile, Le Pen rushed to assure people that the two parties "are not fighting against Europe" but are actually seeking to "save the real Europe" from the dictate of the European Union, which "has become too totalitarian". The aim is to win the EU elections next year and work together for a "Europe of nations" which gives power back to the people, taking it away from the European bureaucracies, she added.

"What we see is worrying", Klaus Regling, the head of the European Stability Mechanism, said in an interview with Bloomberg Television.

"Recent levels of government bond yields do not reflect the country's fundamentals, and once the economic policy agenda is approved by parliament, the uncertainty that has weighed on government securities in recent months will disappear", Tria told parliament's finance committees.

The commission has warned Italy's government, made up of Mr Salvini's League and the anti-establishment Five Star party, that its budget plans will break eurozone spending rules. The national parliament has to approve the budget law by year-end.

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