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Subject

Italy's League party.

Significance

Italy’s far-right League (the former Northern League) seeks to expand its influence in southern Italy, which has been a stronghold for the League’s coalition partner, the anti-establishment Five Star Movement (M5S). The League’s growing popularity in the south could force it to call a general election after May’s European Parliament (EP) elections.

Impacts

The Italian government will bolster its anti-immigrant agenda ahead of the EP elections.

Further electoral success of Italy’s ruling parties could encourage populist movements elsewhere in the EU.

The continued success of far-right politics in Italy will damage financial-market confidence in Italian bonds.

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