Anti-EU parties seize power in Italy and Brussels fears key nation will quit next

BRUSSELS fears Italy will be the next to quit the EU — after two anti-union parties formed a Government.

The Five Star Movement and Northern League vowed to end austerity and blitz migration.

They also demanded a review of Brussels’ spending curbs that limit budget deficits to three per cent of GDP.

Italy’s new Government also wants to renegotiate its debt — the EU’s second highest after Greece — and increase public spending.

It announced: “We will target a programme of public debt reduction.

“Not through revenue based on taxes and austerity — policies that have not achieved their goal — but through increased GDP by reviving demand.”

Yet it stopped short of insisting on immediately leaving the euro, which would have sparked an EU crisis.

The coalition plans to deport 500,000 illegals “as a priority”.

It called for better relocation of them across the EU, already rejected by some countries.

And it urged more help from the union to tackle people-smuggling gangs.

But its bid to review debt and spending could spark its first Brussels clash.

EU investment commissioner Jyrki Katainen last night warned that Italy would have to stick to finance limits.

He said: “I haven’t heard any signals that members or the Commission would like exceptions for any states.”

Italy’s coalition deal ends a deadlock sparked by March elections that saw Five Star, led by Luigi Di Maio, as the biggest party.

Matteo Salvini’s Northern League is third biggest.

Mr Di Maio said: “We’ve finally concluded the Contract for the Government of Change.

"I’m very happy.”