Should we worry about a M5S-League alliance?

The fundamental differences between Italy’s Five Star Movement and League suggest that even if they agree to form a government together, they will not implement either party’s more extreme and costly policy proposals. We would still expect to see a fiscal stimulus and the partial reversal of pension reforms, causing the budget deficit to rise and bond spreads to widen. And ultimately, a renewed push from both parties to leave the euro-zone is not out of the question.