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Italy’s markets spooked as antiestablishment agenda fuels fears of ‘new crisis’

Italian bonds and stocks were sent sharply lower on Wednesday, with investors spooked by a draft proposal from Italy’s two main populist parties to radically change the country’s relationship with the rest of Europe. The 39-page draft, obtained by Huffington Post Italia and published late Tuesday, outlined plans by the 5 Star Movement and the League to ask the European Central Bank to forgive €250 billion ($294 billion) of Italian debt and renegotiate Italy’s contribution to the European Union’s budget. Both the 5 Star Movement and League have previously floated ideas of a Brexit-style referendum on Italy’s EU membership, but dialed back their euroscepticism ahead of the country’s March election.