Would a Five Star-League alliance really be that bad?

The fundamental differences between Italy’s Five Star Movement and League suggest that even if the parties agreed to form a government, they would not agree to implement either party’s more extreme and costly policy proposals. But we would still expect to see a fiscal stimulus and the 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.