Italy’s populist parties face off in regional vote

Bloomberg

Italy’s two populist parties, rivals and allies in the governing coalition, face off in regional elections in the small northern region of Trentino-Alto Adige as they seek an edge in their
national power struggle.
As voters in the semi-autonomous, largely German-speaking provinces of Trento and Bolzano, head to the polls Sunday, the anti-establishment Five Star Movement and the anti-immigration, pro-business League are recovering from the first serious rift of their five-month-old alliance, strong criticism of their budget from the European Union, and a downgrade by Moody’s Investors Service. Polls are open from 7 am to 9 pm and results are
expected overnight.
Matteo Salvini of the League and Five Star leader Luigi Di Maio, co-deputy premiers in the national government, found an accord on Saturday over a tax amnesty that Di Maio said the League had secretly sweetened. The infighting between the two leaders had sparked rumours of a government crisis. The two also vowed to stand united in their response to a European Union letter criticizing Italy’s spending plans by attempting to better explain the rationale
behind the country’s budget.
The governing coalition also faced a downgrade by Moody’s Investors Service, which cut Italy’s credit rating on Friday to one level above junk on concerns about the nation’s fiscal strength and the stalling of plans for structural reform.