Five Star and Lega Ask ECB to Cancel €250 Billion in Debt!

An agreement reached today between M5S and Lega contains an explosive request: Debt Cancellation!

Rumors last night the coalition was about to collapse seem to be false. Explosive details emerge today as noted in these Tweets.


  1. Five Star and the League expect the ECB to forgive 250 billion euros in Italian bonds bought via quantitative easing, in order to bring down Italy's debt
  2. The two parties want to re-open European Treaties and to "radically reform" the stability and growth pact. The coalition would also want to reconsider Italy's contribution to the EU budget.
  3. According to @HuffPostItalia, the 5 Star/League draft agreement would include an opt-out mechanism to leave the euro in an "agreed manner" were there to be a "clear popular will" to do so.
  4. The draft document says Italy should stay in Nato, but asks for an immediate withdrawal of sanctions vs Russia, so that Moscow can return to be a "strategic partner" in conflict zones
  5. According to @HuffPostItalia, the 5 Star/League draft document says there would be a "flat tax"... but with several tax rates and deductions
  6. taly's pension reform would be dismantled: workers would be able to retire when the sum of their retirement age and years of contribution is at least 100.
  7. The draft coalition agreement of a 5 Star/Lega government leaked to @HuffPostItalia calls for a revision of the Dublin regulation on immigration and for compulsory relocation of asylum seekers across the EU
  8. The draft coalition agreement of a 5 Star/Lega government leaked to @HuffPostItalia calls for a revision of the Dublin regulation on immigration and for compulsory relocation of asylum seekers across the EU

This cannot possibly fly, but that's the platform.

Yesterday, Italian President Sergio Mattarella warned Lega and Five Star against an anti-EU platform.

Last night, there were rumors the coalition would collapse.

Today we see this agreement as outlined on Huffington Italy and as described above.


Ferdi Guigliano who made the above translations now posts this:

I do not know what the revised deal includes.

Addendum Two

Draft confirmed except for exit of Euro

PD calls proposal irresponsible

Mike "Mish" Shedlock

Comments (13)
No. 1-13

I would start with 1 trillion as a opening negotiating position. Why not? The reasoning be that it's printed (not real) money, anyways.


EU/ECB give nothing without asking for it's pound of flesh in return. The reforms they would demand would likely be as onerous to negate any debt forgiveness benefit. It's all hot air, nothing will change until there is a major crisis forcing everyone's hand.


I have been reading more and more lately about a debt jubilee /forgiveness whenever the SHTF again. There is never any mention in the articles about the mechanics of the jubilee but it basically states that governments will never be able to pay off their debts and will need to be restructured. I tried to google this and the only thing I could find was that the central banks would buy all the govt debt and when the govt pays the interest the fed would return the interest payment back to the govt. This financial enginering has to have some consequence to it however. I am not sure of what but I expect something like this will eventually happen


It wouldn't surprise me if the ECB gives in to Italy's demands. They will do anything to save their Euro.


When it sinks in that the creditors (ECB/Germany) WILL NEVER be paid back they may as well write it off. However, in return they will want a tonne of concessions/controls going forward and will have to sell it to German tax payers without saying exactly what it is - German savings going up in smoke in the name of achieving a more integrated Europe. I think they will try to do that and it will need to be called out for what it is by the alternative media as the mass media and powers that be will white-wash to avoid a backlash.